Help Your Clients Comply With International Commerce Regulations

Source: The CPA Journal

In today's global economy, companies of all sizes must deal with various laws and regulations that govern commerce and transactions with foreign governments as well as with companies and individuals located in, or connected with, foreign countries. These include the U.S. Trading With the Enemy Act (TWEA), the U.S. International Emergency Economic Powers Act (IEEPA), and the Export Administration Regulations (EAR). Even seemingly local transactions can be troublesome if they involve persons or entities on government watch lists. And violations can lead to significant penalties.

CPAs can play a critical role in helping their clients comply with these laws and regulations. This article provides a primer on compliance with international commerce laws and suggests action steps for CPAs:

• Familiarize yourself with the relevant laws and watch lists. Revisit this information regularly, since laws and lists frequently change.
• Develop an understanding of your clients' businesses and the risks they present. Keep an eye out for high-risk transactions and do some random sampling to check transactions against watch lists.
• Make sure your clients' management is educated on relevant compliance requirements.
• Consult your clients' bankers, who should be familiar with these issues, particularly as they relate to the Bank Secrecy Act (BSA) and the U.S. Office of Foreign Asset Control (OFAC).
• Follow up with clients to be sure their compliance programs are being enforced and updated in light of changes in laws, regulations or their business activities.

For the complete article, read “Making Sure the Long Arm of U.S. Law Doesn't Come Knocking.”

From The CPA Journal, A Publication of the New York State Society of CPAs, May 2011.