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Red Flags Rising

Red Flags Rising: S01 E04 – FRESH LOOKS: Export Controls Penalties

In Episode 4, Mike and Brent revisit another of their prior “Fresh Looks” posts on the NYU Law School’s Program on Corporate Compliance & Enforcement (“PCCE”) blog. This one concerns export control penalties and what to make of recent statements attributed to Commerce Secretary Howard Lutnick and Undersecretary Jeffrey Kessler. Mike and Brent discuss the context for the original November 14, 2023, post (00:30), how historical FCPA penalties compared to U.S. export controls penalties prior to the April 2023 Seagate resolution (01:26), what current official statements and enforcement trends mean for c-suites and boards (02:59), a recent Export Compliance Daily article regarding internal BIS discussions about enforcement priorities (04:57), how to prepare (07:23) for high probability-based enforcement (08:52), the role of the DOJ’s National Security Division (11:01), and conclude with Brent Carlson’s “Managing Up” segment (12:30).

Resources:

Brent LinkedIn

Mike LinkedIn

Mike & Brent’s “Fresh Looks” Series

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Red Flags Rising

Red Flags Rising: S01 E03 – FRESH LOOKS: Loopholes and Liability Pitfalls

Mike & Brent revisit Brent’s original August 25, 2023, “Fresh Looks” post, “When Loopholes Create Liability Pitfalls: A Fresh Look at Export Controls.” They discuss what inspired Brent to write the article (00:40), the Inspur Group controversy (05:38), what legacy perspectives were missing about the compliance and enforcement risks (08:25), and parallels to the U.S. Foreign Corrupt Practices Act enforcement (12:16), why Mike initially hated Brent’s article (13:19), how the risks that Brent highlighted in August 2023 are still relevant today (17:29), the key takeaways for trade compliance professionals (18:29), and the return by popular demand of Brent Carlson’s “Managing Up” segment on what trade compliance should explain to stakeholders, management, and boards about the risks identified in Brent’s article (20:41).

Check out Episode 2 for more on Secretary Lutnick’s March 18, 2025, remarks at the BIS Update conference (see the show notes for additional reporting)

Resources:

Brent’s NYU PCCE Post

Brent LinkedIn

Mike LinkedIn

Mike & Brent’s “Fresh Looks” Series

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Red Flags Rising

Red Flags Rising: S01 E02 – Lutnick: “We Have Had Enough”

Mike and Brent discuss remarks at the Bureau of Industry & Security’s “Update” Conference that started today in Washington, DC (00:00), specifically Secretary of Commerce Howard Lutnick’s statement that he would take a hard line against China (02:18), including a “dramatic increase” in enforcement (04:01) and fines (13:45). In the returning segment “Brent Carlson’s Managing-Up,” Brent identifies key takeaways for trade compliance professionals to share with stakeholders, management, and boards (15:31).

Resources:

The New York Times’ initial report by Ana Swanson about Secretary Lutnick’s Statements 

Ian Cohen’s Subsequent Reporting for Export Compliance Daily 

Brent LinkedIn

Mike LinkedIn

Mike & Brent’s “Fresh Looks” Series

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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

Mike & Brent’s “Fresh Looks” Series

Brent LinkedIn

Mike LinkedIn