Tag: Brent Carlson

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Red Flags Rising

Red Flags Rising: S01 E01 – DeepSeek’s Deep Impact on Export Controls

In the launch of Red Flags Rising, Mike and Brent explain the concept and purpose of the pod (00:00), a recent report by Gregory C. Allen of the Center for Strategic and International Studies on “DeepSeek, Huawei, Export Controls, and the Future of the U.S.-China AI Race” (linked below) (01:43), the report’s emphasis on backing strong regulations with strong enforcement (04:49) and the recently rediscovered “high probability” knowledge standard under the U.S. Export Administration Regulations (06:50), whether and how the Commerce Department’s enforcement capability is impacted by recent policy and personnel decisions (11:00), parallels to the U.S. Foreign Corrupt Practices Act (13:54), and conclude with the first-ever “Brent Carlson on Managing Up” segment, providing practical tips on what trade compliance professionals can do to explain to stakeholders, the c-suite, and boards the value proposition of export controls compliance today (19:43).

Resources:

Gregory C. Allen’s Report: https://www.csis.org/analysis/deepseek-huawei-export-controls-and-future-us-china-ai-race

Brent & Mike’s “Fresh Looks” series: https://www.hugheshubbard.com/fresh-looks

More about Brent: https://www.linkedin.com/in/brent-carlson-41ba692/

More about Mike: https://www.linkedin.com/in/mhuneke/

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All Things Investigations

All Things Investigations – DeepSeek’s AI Revolution: Implications for Compliance and Security

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. In this podcast, host Tom Fox is joined by HHR Partner Mike Huneke and Brent Carlson from the Berkeley Research Group.

Brent Carlson and Mike Huneke review the recent DeepSeek AI announcement, which has stirred significant debate in the business and compliance sectors. Brent views this development as a “Sputnik moment” in the technology space, highlighting both the exciting potential and the profound implications for national security and corporate strategy, particularly due to the dual-use nature of AI technologies. On the other hand, Mike has expressed concern over the contentious debates surrounding export controls, emphasizing the necessity for robust compliance frameworks to mitigate liability risks and adapt to the evolving AI landscape. Together, they stress the importance of incorporating high probability standards and reliable inputs into compliance programs to effectively navigate the complex challenges of advanced AI technologies like DeepSeek, ensuring corporate citizenship and strategic advantage in this new era.

Key highlights:

  • Groundbreaking AI Progress Raises National Security Concerns
  • AI Market Disruption by DeepSeek Technology
  • High Probability Standard in Export Control Compliance
  • Subjective Judgment in Compliance Risk Assessment Framework
  • Red Flag Detection with Data Analytics Tools

Resources:

Hughes Hubbard & Reed website

Brent Carlson on LinkedIn

A Fresh Look at US Export Controls and Sanctions

DeepSeek Finds US Export Controls at a New ‘Sputnik Moment’ in Bloomberg Law

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FCPA Compliance Report

FCPA Compliance Report – DeepSeek and the Sputnik Moment

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this episode, Tom welcomes back Mike Huneke and Brent Carlson for a special two-part podcast series on DeepSeek’s bombshell AI advancements announced on President Trump’s inauguration day. In Part 1, we reviewed the business and compliance implications, and in Part 2, they consider the Sputnik Moment that has occurred.

In this episode, we delve into the concept of the ‘Sputnik moment’ as it relates to the global race to dominate artificial intelligence (AI) technology in the 21st century. Our discussion highlights AI’s economic and military applications and its significance for the United States. The conversation touches on the role of compliance, enforcement, and the evolving regulatory landscape, including recent developments like the AI diffusion framework. The episode also explores the increasing responsibilities placed on U.S. companies and their compliance teams, especially concerning export controls and national security standards.

Key highlights:

  • Economic and Military Implications of AI
  • Compliance and Enforcement Challenges
  • The Role of Compliance Teams
  • Board of Directors’ Responsibilities

Resources:

Mike Huneke

Hughes Hubbard & Reed website

Brent Carlson on LinkedIn

A Fresh Look at US Export Controls and Sanctions

DeepSeek Finds US Export Controls at a New ‘Sputnik Moment’ in Bloomberg.Law

Tom Fox

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For more information on the Ethico Toolkit for Middle Managers, available at no charge, click here.

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FCPA Compliance Report

FCPA Compliance Report – DeepSeek and the Recalibration of Risk with Mike Huneke and Brent Carlson

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast in compliance. In this episode, Tom welcomes back Mike Huneke and Brent Carlson for a special two-part podcast series on DeepSeek’s bombshell AI advancements announced on President Trump’s inauguration day. In Part 1, they review the business and compliance implications, and in Part 2, they consider the Sputnik Moment that has occurred.

In Part 1, they consider the immediate and significant repercussions in both the business and compliance landscapes. Key topics include the economic and geopolitical ramifications of DeepSeek’s innovations, changes in export control policies, and the unique compliance challenges AI technology poses. The discussion also examines how corporations can recalibrate their risk frameworks, integrate high-probability standards, and leverage data analytics to handle millions of transactions in a global economy. Emphasizing the importance of comprehensive compliance programs, the episode provides actionable insights for compliance professionals navigating this evolving landscape.

Key highlights:

  • DeepSeek’s AI Breakthrough
  • Economic and Compliance Implications
  • Export Controls and Legal Concerns
  • Compliance Strategies and Risk Management
  • Training and Organizational Culture

Resources

Mike Huneke

Hughes Hubbard & Reed website

Brent Carlson on LinkedIn

A Fresh Look at US Export Controls and Sanctions

DeepSeek Finds US Export Controls at a New ‘Sputnik Moment’ in Bloomberg.Law

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn

For more information on the Ethico Toolkit for Middle Managers, available at no charge, click here.

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FCPA Compliance Report

FCPA Compliance Report – Strategic ROI: Navigating Export Controls and Compliance

Welcome to the award-winning FCPA Compliance Report, the longest-running compliance podcast. In this episode, Tom welcomes back Brent Carlson and Mike Huneke to discuss a crucial topic in corporate compliance: the return on investment (ROI) in export controls compliance.

This pod reviews the challenges compliance professionals face in articulating the value proposition for investments in compliance programs. Brent and Mike highlight the misconceptions about compliance being merely a cost center and explore various ways to demonstrate its tangible benefits to executive teams and boards. The discussion also covers the impact of recent regulatory changes and geopolitical tensions and how companies can proactively address these shifts to ensure robust compliance and leverage new opportunities. By looking at past enforcement actions and drawing parallels with the evolution of the FCPA, the episode provides listeners with critical insights into the practical steps for enhancing compliance programs and the importance of staying ahead of regulatory expectations in a rapidly changing global trade environment.

Key highlights:

  • Setting the Stage for Compliance ROI
  • Challenges in Export Controls Compliance
  • Geopolitical Influences on Export Controls
  • Comparing Export Controls to FCPA
  • National Security and Economic Security
  • Solutions and Strategies for Compliance

Resources:

Hughes Hubbard & Reed website

Brent Carlson on Linkedin

Mike Huneke on LinkedIn

A Fresh Look at US Export Controls and Sanctions

Tom Fox

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Facebook

YouTube

Twitter

LinkedIn

For more information on the Ethico Toolkit for Middle Managers, available at no charge, click here.

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All Things Investigations

All Things Investigations – Huneke and Carlson on Directors’ Accountability for Compliance and Risk Management

Welcome to the Hughes Hubbard Anti-Corruption & Internal Investigations Practice Group’s podcast, All Things Investigation. In this podcast, I was joined by HughesHubbardReed partner Mike Huneke and Brent Carlson, Director at BRG, to discuss the concepts around their recent paper, Boards of Directors Lovin’ It after McDonald’s? A Fresh Look at Directors’ Duty of Oversight in the New Era of Sanctions & Export Control Corporate Enforcement.

Mike Huneke and Brent Carlson are seasoned professionals specializing in fraud compliance, corruption issues, sanctions, and export control enforcement. Huneke’s perspective on the duties of directors in sanctions and export controls is that boards need to be proactive and engaged in understanding and addressing these risks, emphasizing the importance of caution, skepticism, and diligence in overseeing these critical areas of compliance. His views are shaped by his experience in investigating, litigating, remediating, and preventing fraud, as well as his belief in the importance of good corporate governance and risk management. Carlson emphasizes the significance of understanding geopolitics in the context of company operations and advocates for a return to fundamental principles amidst rapid regulatory changes. His perspective is shaped by his experience in assisting companies navigate the complexities of sanctions and export controls, and his belief in the importance of boards actively engaging with management, asking questions, and ensuring thorough investigations are conducted.

Key Highlights:

  • Directors’ Role in Export Control Compliance
  • McDonald’s Case: Duty of Oversight Emphasis
  • Dynamic Compliance Monitoring for Export Controls
  • Directors’ Accountability for Compliance and Risk Management
  • Proactive Board Oversight for Compliance Excellence

Resources:

Hughes Hubbard & Reed website

Brent Carlson on Linkedin

This podcast is based on: 

Brent & Mike’s blog post on directors’ duty of oversight can be found here: Boards of Directors Lovin’ It after McDonald’s? A Fresh Look at Directors’ Duty of Oversight in the New Era of Sanctions & Export Control Corporate Enforcement (Jan. 12, 2024).

For more on sanctions and export control compliance in the new era of FCPA-like corporate enforcement, see Brent’s and Mike’s prior posts here:

— Brent’s piece that launched the series, When Loopholes Create Liability Pitfalls: A Fresh Look at Export Controls (Aug. 25, 2023).

— How can you assess your risk of sanctions violations?  Know Your Customer, But Also Yourself: A Fresh Look at Sanctions & Export Controls Risk Assessments in the Era of the “New FCPA” (Sept. 28, 2023).

— If you discover a sanctions problem, how can you efficiently investigate and remediate it?  Slow is Smooth, Smooth is Fast: A Fresh Look at Planning and Executing Internal Investigations into Allegations of Sanctions or Export Controls Evasion (Oct. 30, 2023).

— What does that mean for future fines and penalties for export control evasion?  From Peanuts to Prison Time – A Fresh Look at the Evolution of Export Controls Penalties (Nov. 14, 2023).

— Why is an FCPA “mindset” required for sanctions and export control compliance, and how to apply one?  The Blind Men and the Elephant (Dec. 18, 2023).