Seize the Opportunity for Efficient Compliance in A&D
Authority to export is a privilege — one that can be removed — and not a right. With that reality in mind and as a result of emerging technologies, A&D companies are rethinking their approach to export authority to demonstrate an increasingly automated and secure level of compliance.
Over the past five years, many companies in the industry have been extensively audited to demonstrate compliance against renewed export control regulations. Some companies are being fined significantly and required to sign consent agreements to ensure that export compliance breaches are rectified within a given time period. The implications of noncompliance are significant:
- Under U.S. law, failure to comply with export control regulations can have severe consequences, with penalties reaching up to $250,000 per occurrence. This can result in fines that run into millions of dollars.
- The U.S. government may impose a “denial of export privileges” as a penalty for compliance violations, which means that offenders may not export goods or services and may no longer compete for government contracts.
- Sanctions can be imposed on officers, directors and employees for direct violations or failure to properly supervise subordinates. Other violations include aiding, abetting, and conspiring to make a prohibited export. Services such as transportation, freight forwarding, brokering and other export facilitation activities are also subject to the sanctions.
Seize the Opportunity for Efficient Compliance
Learn more about how to consistently demonstrate compliance in the A&D industry.
Emerging technologies are enabling government bodies to require a level of process automation that can segregate controlled data and ultimately provide an “always on” auditing capability. When considering compliance, companies face a number of challenges, including cultural and systematic issues that question the maturity of their compliance landscape.
Traditionally seen as a reactive environment, fostering a local, quick-fix culture that often results in inconsistent delivery of compliance-related activities. Heroics are often needed by specialist resources to act in response to a violation — which, at this stage, is often too late.
DXC has demonstrated recent success working with clients around the world to deliver sustainable business transformation to embed compliance across the enterprise. We have done so by taking our clients through a journey that establishes a firm vision and standards in compliance.
A critical step toward achieving compliance is to ensure effective governance structures are established, to demonstrate true ownership and accountability. The culture aspect is about everyone knowing what they need to do and the importance of their role. Transformation to next-generation technology can be used to enable a standard way of working that demonstrates compliance.
Contact us to learn more about how DXC can support your compliance needs.
