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

2. 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, June 2016

3. 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
ANCEX first started promoting the ICP – first compliance manual and seminar – about 70 registered companies
ICP legal requirement for transactions with military goods – awareness tool, no sanctions
Wassenaar Arrangement, 20th Anniversary Practical Workshop, Vienna, June 2016

4. 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, June 2016

5. 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, June 2016

6. 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, June 2016

7. 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, June 2016

8. 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, June 2016

9. 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, June 2016

10. 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, June 2016

11. 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, June 2016

12. 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, June 2016

13. ANCEX - DEPARTMENT FOR EXPORT CONTROLS
Thank you!
Simona Codrescu, Advisor Ministry of Foreign Affairs Department for Export Controls – Conventional Arms Division Phone:
Wassenaar Arrangement, 20th Anniversary Practical Workshop, Vienna, June 2016