February 2012 — For Canadian exporters of ITAR-controlled goods or technology, the recent Bulletin No. 9 issued by the Controlled Goods Directorate ("CGD") will be of interest.1 On February 2, 2012, the CGD released an interim guidance document outlining its newly amended approach to the use of government security clearances for Enhanced Security Strategy ("ESS") assessment purposes. Certain security clearances provided by the Government of Canada may be used to satisfy the ESS assessment, as an alternative to completion of the CGD's lengthy Security Assessment Application. The Bulletin further elaborates upon the circumstances in which a Designated Official ("DO")2 may accept government security clearances in satisfaction of an ESS assessment.

This interim guidance Bulletin confirms that a DO may accept existing Government security clearances of Secret level or higher "...as a means to expediently collect and validate the information required as part of the security assessment process." The onus remains with the DO of determining for him- or herself that the government security clearance is valid and does in fact satisfy the "risk of divergence" analysis. Note that this means that the DO will need to obtain the consent of the employee holding the security clearance to use it and the personal information associated with it.

As outlined by the Bulletin, a DO must have the following documentation on file in order to accept a government security clearance in satisfaction of the ESS assessment:

  • The completed Security Screening Certificate and Briefing Form (TBS 330-47) used to obtain the security clearance;
  • A completed Security Clearance Form (TBS 330-60) used to obtain the security clearance. Note: If the DO does not have this on file, the individual under assessment must complete the CGP Security Assessment Application;
  • Consent to Use the Government of Canada Security Clearance3 or section M of a completed Security Assessment Application, and
  • Security Assessment Summary by Designated Official Conducting a Security Assessment of an Employee, Director, Officer, or Authorized Individual4 (formerly appendix 4 Verification Document for Designated Official Conducting a Security Assessment of an Employee, Director, Officer).

One of the implications of this recent announcement is that, practically speaking, it may be difficult for a DO to rely upon clearance obtained by an employee while working for another employer. Companies should be aware that in order to properly assess the "risk of diversion" posed by the employee, the DO must be able to review the Treasury Board Forms (and all of the personal information they include) that provided the basis for the security clearance. Where the employee obtained his/her security clearance while working for another company, the clearance may be transferred but it must be accompanied by the crucial Treasury Board Forms. A DO who is presented with an employee's security clearance, but who does not have access to the Treasury Board Forms, must require the employee to complete the Security Assessment Application.

Footnotes

1 http://ssi-iss.tpsgc-pwgsc.gc.ca/dmc-cgd/bulletins/bulletin9-eng.html

2 http://ssi-iss.tpsgc-pwgsc.gc.ca/dmc-cgd/apropos-about/rd-do-eng.html

3 http://ssi-iss.tpsgc-pwgsc.gc.ca/dmc-cgd/form/inscrptn-rgstrtn/as-sc-eng.html

4 http://ssi-iss.tpsgc-pwgsc.gc.ca/dmc-cgd/form/rd-do/sommaire-summary-eng.html

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.