Corporate & Internal Investigations

Companies often must decide whether to conduct internal investigations after receiving information that could indicate ongoing violations of trade laws and regulations. Torres Trade Law discretely assists companies and boards of directors conducting internal audits and investigations. We take adequate steps to preserve the attorney-client privilege, immediately stop ongoing violations, and ensure resources and personnel are assigned to the investigative team.

We also guide companies who have discovered violations – including of export rules, economic sanctions, anti-corruption and money-laundering regulations, and customs laws – through the Voluntary Self-Disclosure process. And we work with clients to develop and implement airtight internal compliance programs to minimize the risk of recurring costly violations.

Our services include assistance on:

• Government investigations (exports, economic sanctions, customs issues)
• Foreign Corrupt Practices Act
• Whistleblower Allegations
• Computer Forensics
• E-discovery Services
• Expert Testimony
• Forensic Investigations
• Litigation Intelligence
• Managed Document Review
• Trial Support Services
• Voluntary Disclosures to Government agencies

Frequently Asked Questions: Corporate and Internal Investigations

1. What triggers the need for a corporate or internal investigation?

Common triggers include allegations of trade law violations, whistleblower complaints, suspected customs fraud or tariff evasion, violations of export controls or sanctions, internal audits revealing irregularities, and regulatory investigations or requests for information (see, BIS, DDTC, OFAC, and CBP Subpoenas and Requests for Information – Tips to Comply).

2. What laws or regulations are commonly involved in international trade-related investigations?

Typical legal frameworks include U.S. export controls (International Traffic in Arms Regulations/Export Administration Regulations), economic sanctions (Office of Foreign Assets Control), the Foreign Corrupt Practices Act (FCPA), anti-money laundering regulations, customs laws, and anti-boycott rules.

3. Who should conduct an internal investigation—inside counsel or outside law firm?

An outside law firm is recommended for serious or material allegations and those potentially reportable to regulators (e.g., CBP, DDTC, BIS), or when independence is critical. In-house counsel may handle less critical or routine issues.

4. How do we protect attorney-client privilege during an investigation?

To preserve privilege:

• Involve legal counsel early.
• Mark investigation-related documents as privileged and confidential.
• Limit distribution to only those who need access.
• Document legal purpose for activities.

5. What are the main stages of an internal investigation?

• Scoping and planning
• Document collection and review
• Conducting witness interviews
• Analysis of findings
• Recommendations and remediation
• Reporting findings to management, board, or regulators as needed.

For additional information, see Conducting Effective Corporate Investigations.

6. What are the risks of not conducting an internal investigation?

Potential risks include increased regulatory penalties, loss of mitigating factors in enforcement, civil liability, reputational harm, and business disruptions.

8. When and how should the company self-disclose findings to regulators?

Voluntary self-disclosure is advisable when violations are material and proactive cooperation could mitigate penalties. Timing and content should be coordinated with external legal counsel. See our VSD Handbook for additional information about voluntary self-disclosures to relevant regulators and enforcement agencies.

9. What are best practices for conducting witness interviews?

• Prepare in advance with clear objectives.
• Clarify representation and confidentiality to interviewees (Upjohn warning).
• Take thorough notes or memos.
• Memorialize interviews shortly afterward.

10. How should a company handle whistleblower complaints?

Investigate impartially and promptly, ensure confidentiality to the extent possible, and protect against retaliation in accordance with whistleblower protection rules.

11. What remedial actions may result from an investigation?

Actions can include internal discipline, compliance program improvements, training, reporting to authorities, operational changes, or restitution.

For more nuanced or situation-specific inquiries, consulting with specialized outside counsel is recommended. If you believe an internal investigation related to international trade or national security is required or would be beneficial for your company, please do not hesitate to reach out to Torres Trade Law.