International & Domestic Due Diligence
Particularly since Russia’s invasion of Ukraine in February 2022, authorities from the United States, Canada, European Union, United Kingdom, and other like-minded countries have issued multiple unilateral and multilateral advisories and guidance emphasizing that companies involved in international trade must identify and escalate “red flags,” and take reasonable measures to “Know Your Customer” (KYC) and even “Know Your Customer’s Customer,” sometimes referred to as “KYC2.”
Similar guidance has long been raised with respect to comply with the Foreign Corrupt Practices Act (FCPA), Canada’s Corruption of Foreign Public Officials Act (CFPOA) and the UK Bribery Act 2010 (UKBA) and other antibribery and anticorruption laws, as well as more recent legislation such as the Uyghur Forced Labor Prevention Act (UFLPA).
In today’s more aggressive international trade enforcement environment, even companies operating solely in the United States should be performing in-depth due diligence when evaluating mergers, acquisitions, and other strategic alliances, as well as business opportunities that could involve parties that are listed on OFAC’s Specially Designated Nationals and Blocked Persons (SDN) List, the Bureau of Industry and Security’s (BIS) Denied Persons List, or are debarred by federal and state agencies, or international organizations such as the World Bank.
Leveraging experience, as well as licensed research and compliance databases to conduct comprehensive domestic and international due diligence, Yormick Law provide a level of analysis that extends beyond publicly available online information. We regularly provide clients with insightful business intelligence and due diligence reports regarding individuals, entities, universities, research centers, and various business opportunities, identifying and advising clients on legal and regulatory export controls, sanctions, bribery and corruption, and reputational risks, that is relied on to make informed decisions regarding transaction and strategic alliance structures, value, potential customers and other counterparties, including handling voluntary disclosures before US government agencies that might be necessary after apparent violations are revealed during comprehensive due diligence and integration.
Whether it is identifying commodity and technology diversion risk involving exports to foreign parties in high risk jurisdictions, investigating and clearing “red flags” raised in restricted party screening, identifying researchers at foreign universities who collaborate with foreign adversary militaries, advising on bribery and reputational risks posed by foreign state-owned enterprises, confirming ownership of Belarusian, Chinese, Hong Kong, Cypriot or other foreign entities, or representing clients before agencies such as the Bureau of Industry and Security, Office of Export Enforcement in voluntary disclosures of a target company’s apparent violations, Yormick Law has the knowledge and experience to support clients and their advisors in international and domestic due diligence.
If you need assistance with domestic or international due diligence, business intelligence, sanctions screening, or regulatory risk assessments, please contact us at [email protected]
Noticias y perspectivas
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5 Things Defense Contractors Need to Know About DoD’s Proposed Expansion of FOCI Requirements
The Department of Defense’s proposed expansion of Foreign Ownership, Control, or Influence (FOCI) requirements could significantly increase compliance obligations for many uncleared defense contractors, introducing new disclosure, reporting, and mitigation requirements tied to foreign ownership, investment, governance, financing, and business relationships.
OFAC’s $275 million Settlement with Adani Sends a Strong Message to Non-US Companies: Screening Alone Is Not Enough
OFAC’s $275 million settlement with Adani Enterprises underscores growing US sanctions enforcement against non-US companies, emphasizing that restricted party screening and formal compliance programs alone are insufficient when broader transactional red flags suggest potential sanctions evasion risks involving Iran or other high-risk jurisdictions.
Yormick Law Continues Providing Thought Leadership on International Trade Issues
Yormick Law LLC attorneys will present two webinars on May 12, covering IEEPA tariff refund strategies, BIS and DDTC outreach visits, enforcement actions, and voluntary disclosures as part of AIJA programming and the U.S. Commercial Service’s Export Week series.
BIS Enforcement Action Highlights Risks in De Minimis Calculations for Foreign-Made Items
A recent BIS enforcement action against Teledyne FLIR highlights the risks of misapplying the EAR’s de minimis rule in global supply chains. The case underscores the need for accurate valuation, proper classification of U.S.-origin content, and robust documentation to avoid significant export control penalties.
Export Controls & National Security Round Table
Yormick Law is launching a renewed quarterly Export Controls & National Security Roundtable series, featuring lunch-and-learn sessions focused on key regulatory developments, emerging issues, and practical insights for navigating complex compliance requirements.
Court of Appeals Affirms Transaction Value Applies When Sales are Structured as Domestic, if the Sales Trigger Exportation to the US
The U.S. Court of Appeals for the Federal Circuit affirmed that transaction value applies for customs valuation when sales–regardless of being structured as domestic–trigger the exportation of goods to the United States.