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Compliance Risk Management in Haiti: Key Considerations for UC Berkeley Researchers

As researchers at the University of California, Berkeley (UC Berkeley) consider conducting research or engaging in business activities in Haiti, it’s essential to be aware of the various compliance risks and requirements. Failure to comply with these regulations can result in significant penalties, fines, and even criminal charges.

Activities That May Trigger US Government Compliance Considerations

The following activities may trigger US government compliance considerations:

  • Hiring a local employee
  • Purchasing or leasing office or research space
  • Purchasing or leasing an automobile
  • Establishing a long-term (over 90 days) or ongoing project
  • Conducting a clinical trial

US Government Compliance Considerations

Several US laws apply to foreign activities, including:

Import Controls

  • UC employees must adhere to US import requirements and may need to enlist the services of a customs broker for shipments arriving by sea.

Export Controls

  • Export controls may apply to advanced software and technology, research data, and other sensitive assets.
  • Researchers should consult the campus Research Administration Compliance Office before taking or sending potentially export-controlled materials to Haiti.

Tax Reporting

  • The University and its employees may be taxed in foreign countries. The United States does not have a tax treaty with Haiti, so researchers should contact the Controller’s Office for tax advising and unrelated business income tax coordination.

Foreign Bank Account Reporting

  • US citizens with financial interests in or signatory authority over foreign bank accounts exceeding $10,000 must report these accounts on a Report of Foreign Bank and Financial Accounts (FinCen Report 114).

Country Embargoes and Targeted Sanctions

  • Collaborations between UC Berkeley personnel and scholars at foreign institutions may require export licenses if they involve export-controlled or restricted research.
  • Researchers should verify that the foreign collaborator is not blocked or sanctioned.

Foreign Corrupt Practices Act (FCPA)

  • This law prohibits offering, paying, promising to pay, or authorizing payments of money or anything of value to a foreign official.
  • Researchers should review the federal government’s Resource Guide to the US Foreign Corrupt Practices Act and consult with the UC Berkeley Office of Legal Affairs if needed.

Anti-Boycott Laws

  • The US Department of Commerce oversees laws prohibiting individuals and entities from participating in boycotts not approved or sanctioned by the US government.

Additional Considerations for Doing Business Internationally

Researchers should also be aware of the following international compliance considerations:

Foreign Bank Accounts

  • Employees wishing to open a foreign bank account must contact the Controller’s Office.

Real Estate Agreements

  • Only employees with delegated authority may enter into agreements, leases, or contracts.
  • Foreign affiliates or operations must submit property management agreements and personal property leases for approval.

Further Resources

For more information on international compliance, researchers should refer to UC Berkeley’s International Compliance webpage. By understanding these compliance requirements, researchers can ensure that their activities in Haiti are conducted legally and ethically.