ITAR

US law firms that provide services to defense contractors must take special care to comply with the International Traffic in Arms Regulations (ITAR) and the Arms Export Control Act. These regulations dictate that information and material pertaining to defense and military related technologies may only be accessed by US persons (citizens or permanent residents).

Enforced by the US Department of State, ITAR helps protect national strategic and foreign policy interests. Given the importance of guarding national defense interests, organizations that expose protected information inappropriately may face civil penalties as high as $500,000 per violation and the potential of criminal prosecution. Such materials include but are not limited to:

  • Designs
  • Test data
  • Processes
  • Source code

 

The Problem

In a climate of heightened concerns over national security, compliance is more important than ever. Law firms providing services to organizations subject to ITAR and related rules must take special care to implement and enforce internal controls. This means ensuring that internal parties not considered US persons are not able to access restricted materials provided by or prepared for clients. Firms must be careful not to overlook affected personnel such as IT or administrative staff with access to key information repositories such as document management applications or lawyers based in international offices.

Firms may also need to confirm and demonstrate ITAR compliance measures to existing or potential clients, or to the State Department, should more serious compliance concerns arise.

The Intapp Solution – Intapp Walls

Intapp Walls enables firms providing services to clients who develop or deliver defense and military related technologies to lock down and control internal access to sensitive information subject to ITAR regulations. Access for particular matters can be restricted to US persons employed by the firm or to a specific subset of authorized users. With comprehensive logging, Intapp Walls also provides firms with a clear audit trail should the need arise to demonstrate compliance to external parties.

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