In Anti-Corruption Report, Emerson Siegle Examines How Companies Can Strengthen Trade Controls Compliance

In “A Primer on Trade Controls for Compliance Professionals: Building a Stronger Program,” an article in the Anti-Corruption Report, litigation & enforcement partner Emerson Siegle discusses how companies can build and strengthen compliance programs to manage trade controls risk in a fast-changing regulatory environment.

Emerson explains why trade controls require sustained attention: “Every six to 12 months there seems to be a global development that impacts trade controls. Russia's invasion of Ukraine, new tariffs imposed by the Trump administration and the current situation in Iran have all impacted trade controls.” These developments, he notes, show why trade controls are "a very important area in which to have robust compliance controls.” That pace of change leaves companies little time to adjust, as Emerson points out: “Typically, compliance with new sanctions or export controls must be instantaneous.” With no grace period, he says, companies need to stay “up to date with all of the broad and evolving regulatory trends.”

Staying current is only part of the challenge, as Emerson cautions that distance from a product's final destination does not necessarily protect a company from liability. Companies must “manage their third parties and understand how third parties distribute the goods they purchase,” he explains, because “under trade laws, one cannot do indirectly what they cannot do directly.”

The article is the fourth and final installment in a four-part primer on trade controls for compliance professionals. Anti-Corruption Report also spoke to Emerson for each of the earlier articles in the series. Part one defined and differentiated common trade controls, including sanctions, export controls, customs and tariffs. Part two explored the current trade enforcement landscape. Part three examined which companies are at greatest risk under trade controls.