US trade policy’s global reach highlights need for risk assessment

The recent imposition of record fines under US export controls and the Foreign Corrupt Practices Act underscore that all multinational companies need to put a high priority on international regulatory risk management. With automotive companies often selling to and operating in high-risk environments like China and Mexico, it is critical that multinational automotive players take all steps to comply with high-risk legal regimes, such as the FCPA, OFAC sanctions, and export controls. Further, now that President Trump has withdrawn from the Joint Comprehensive Plan of Action, which eased the sanctions on Iran, the specialty sanctions that targeted the Iranian automotive industry have “snapped back” and now once again pose compliance challenges for the automotive industry.