Daily Operations: Companies Must Demonstrate Commitment to Compliance
In an effort to ensure that Luxembourg-based companies comply with trade controls, it is crucial for management to demonstrate a clear commitment to respect and comply with these regulations. Without this commitment, internal staff and government authorities may question the effectiveness of the company’s Internal Compliance Program (ICP).
Management Commitment
The management commitment statement should be an original document with original signatures from top-level management, empowered to legally commit the company. This statement must be integrated into the ICP document at the beginning.
- The commitment is written in clear and simple language
- It demonstrates a genuine commitment to compliance
- It sets the tone for the entire staff
Applicable Legislation
The ICP must provide users with a complete and detailed overview of the legal framework governing export control compliance. This includes precise legal references where companies can find the laws and regulations they are subject to.
- A detailed explanation of the export control laws and regulations
- A clear indication of the legal basis for each restriction
- References to relevant legal texts
Risk Assessment
An ICP needs to be tailored to the company’s specific business activity and related risks. Therefore, companies are recommended to start with a risk assessment to determine their specific dual-use trade risk profile.
The risk assessment should carefully assess the product range, customer base, and business activity affected by dual-use trade control, identifying relevant vulnerabilities and risks that can be mitigated under the ICP.
Practical Aspects
Companies often already have internal control processes in place and do not need to start from scratch when designing ICPs. The risk assessment supports companies in assessing their existing corporate policies and procedures against export control-related risks and coming up with a comprehensive ICP.
In conclusion, Luxembourg-based companies must demonstrate a clear commitment to compliance by integrating the ICP into their daily operations, empowering staff, and fostering a culture of integrity, transparency, and compliance. By doing so, companies can ensure that they are in line with government regulations and minimize the risk of non-compliance.