ANCEX - DEPARTMENT FOR EXPORT CONTROLS Internal Compliance Program - The Romanian experience - Wassenaar Arrangement 20th Anniversary Practical Workshop Vienna, 27-28 June 2016

What is the Internal Compliance Program (ICP)? ANCEX - DEPARTMENT FOR EXPORT CONTROLS What is the Internal Compliance Program (ICP)? A collection of internal procedures which ensures compliance to export control regulations. Similar to ISO 9001 quality management system Applicable to companies but also to research centers and institutes Wassenaar Arrangement, 20th Anniversary Practical Workshop, Vienna, 27-28 June 2016

The National Authority and the ICP ANCEX - DEPARTMENT FOR EXPORT CONTROLS The National Authority and the ICP Companies are the first line of defence for an effective export control system 2003 - ANCEX first started promoting the ICP – first compliance manual and seminar – about 70 registered companies 2004 - ICP legal requirement for transactions with military goods – awareness tool, no sanctions Wassenaar Arrangement, 20th Anniversary Practical Workshop, Vienna, 27-28 June 2016

ICP scheme core principles ANCEX - DEPARTMENT FOR EXPORT CONTROLS ICP scheme core principles Responsibility for compliance Flexibility - no “one size fits all” Dynamism – regular reviews and updates Wassenaar Arrangement, 20th Anniversary Practical Workshop, Vienna, 27-28 June 2016

ICP basic elements Commitment to Compliance or Statement of Principles ANCEX - DEPARTMENT FOR EXPORT CONTROLS ICP basic elements Commitment to Compliance or Statement of Principles – signed by senior representative underlines the risks and penalties for non-compliance distributed to all personnel involved in export activities can nominate the person responsible for export control Wassenaar Arrangement, 20th Anniversary Practical Workshop, Vienna, 27-28 June 2016

ICP basic elements 2. The Export/Import Administrator ANCEX - DEPARTMENT FOR EXPORT CONTROLS ICP basic elements 2. The Export/Import Administrator primarily responsible for export controls authority to stop a transaction/shipment independent from the sales or marketing department, in order to avoid conflict of interests. Wassenaar Arrangement, 20th Anniversary Practical Workshop, Vienna, 27-28 June 2016

ICP basic elements 3. Administrative procedures ANCEX - DEPARTMENT FOR EXPORT CONTROLS ICP basic elements 3. Administrative procedures list of personnel involved; organization chart, tasks and responsibility; training; record keeping and reporting; internal auditing; ICP updates and reviews; disciplinary procedure for violations of export controls. Wassenaar Arrangement, 20th Anniversary Practical Workshop, Vienna, 27-28 June 2016

ICP basic elements 4. Operational procedures – export screening ANCEX - DEPARTMENT FOR EXPORT CONTROLS ICP basic elements 4. Operational procedures – export screening product classification against the national control lists (implementing the WA control lists and other international arrangements and conventions) client and end-user verification against international sanctions lists (UN Security Council, EU, OSCE), assessment based on “red flags” indicators end-use screening – risk of diversion Notification and reporting Wassenaar Arrangement, 20th Anniversary Practical Workshop, Vienna, 27-28 June 2016

Why does a company need an ICP? ANCEX - DEPARTMENT FOR EXPORT CONTROLS Why does a company need an ICP? “Safety net” against significant fines, administrative and penal sanctions at company and personal level Low risk of providing market or technical information to dubious companies or individuals, or exploring very sensitive or sanctioned potential markets, saving significant financial, human or time resources. Opens the access to global and general licenses Wassenaar Arrangement, 20th Anniversary Practical Workshop, Vienna, 27-28 June 2016

Romanian experience with the ICP scheme ANCEX - DEPARTMENT FOR EXPORT CONTROLS Romanian experience with the ICP scheme significant amount of work and resources for implementation, but laid the foundation for the control system the ICP manual is distributed to every company after registration changes and audits to ICP are notified to ANCEX non-compliance stems from an ineffective ICP – eliminate de cause close contact with companies, free assistance Wassenaar Arrangement, 20th Anniversary Practical Workshop, Vienna, 27-28 June 2016

Romanian experience with the ICP scheme ANCEX - DEPARTMENT FOR EXPORT CONTROLS Romanian experience with the ICP scheme Challenges: resistance to change “paper ICP” changes in European regulations (Directive 2009/43/CE) changes in national industry – from 30 companies in 2001 to 130 in 2016 Wassenaar Arrangement, 20th Anniversary Practical Workshop, Vienna, 27-28 June 2016

Romanian experience with the ICP scheme ANCEX - DEPARTMENT FOR EXPORT CONTROLS Romanian experience with the ICP scheme Revision and development of the ICP scheme is under way: different levels of compliance and related ICP guidelines special ICP guidelines for brokering / intermediaries ICP audit requirement for global licenses stronger cooperation with the Ministry of Economy to identify industry trends and for outreach activities Wassenaar Arrangement, 20th Anniversary Practical Workshop, Vienna, 27-28 June 2016

ANCEX - DEPARTMENT FOR EXPORT CONTROLS Thank you! Simona Codrescu, Advisor Ministry of Foreign Affairs Department for Export Controls – Conventional Arms Division Phone: +40 374 306 928 E-mail: simona.codrescu@mae.ro www.ancex.ro Wassenaar Arrangement, 20th Anniversary Practical Workshop, Vienna, 27-28 June 2016