Tag: sanctions

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Red Flags Rising

Red Flags Rising: S01 E11 – Point-Counterpoint – U.S. Export Controls Policy

Mike & Brent return with a point-counterpoint episode on U.S. export control policy. After discussing the latest news about U.S. AI export controls (01:03), they discuss the points and counterpoints related to whether we should have export controls at all (04:57), the relevance of the national security justifications offered by the U.S. Department of Commerce in promulgating its regulations (06:52), the lessons of Ukraine battlefield recoveries (09:59), the views of Anthropic’s CEO, Dario Amodei, on risk and how to push any industry to a more-compliance mindset (rather than acquiesce to the race to the bottom) (10:44), why Brent shouldn’t talk about the old days of corruption (12:08), and how not only the export controls’ design but also their enforcement by government and compliance efforts by industry are all relevant factors to consider in assessing export controls’ effectiveness (14:53). They conclude with the latest installment of Brent’s “Managing-Up” segment (23:04).

Resources:

Brent LinkedIn

Mike LinkedIn

Mike & Brent’s “Fresh Looks” Series

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Compliance Into the Weeds

Compliance into the Weeds: USRA Declination Case Study: Self-Disclosure Best Practices

The award-winning Compliance into the Weeds is the only weekly podcast that takes a deep dive into a compliance-related topic, literally going into the weeds to explore a subject more fully. Are you looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds! In this Compliance into the Weeds episode, Tom Fox and Matt Kelly take a deep dive into the declination recently given by the DOJ to the Universities Space Research Association (USRA).

In this episode, Tom and Matt dive deeply into a recent decline issued by the Department of Justice (DOJ) to the University Space Research Association (USRA). The discussion focuses on the organization’s exemplary behavior in self-disclosure and cooperation during an investigation into an employee’s misconduct. This misconduct included unauthorized export of software to Beijing University. The hosts highlight the case as a textbook example of effective compliance practices, self-reporting, and cooperation with regulators. They also explore the DOJ’s guidelines on self-disclosure and the importance of internal controls in high-risk areas.

Key highlights:

  • Case Overview: USRA Declination
  • DOJ Press Release Insights
  • Details of the Misconduct
  • USRA’s Response and Cooperation

Resources:

DOJ Press Release on Universities Space Research Association Declination

Tom

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Compliance into the Weeds was recently honored as one of a Top 25 Regulatory Compliance Podcast and a Top 10 Business Law Podcast, and a Top 12 Risk Management Podcast.

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Red Flags Rising

Red Flags Rising: S01 E09 – Tariffs: Navigating Uncertainty & Mitigating Enforcement Risk

Mike & Brent jump into tariffs to focus on practical strategies to navigate these uncertain times and mitigate the risk of future enforcement actions. Specifically, they discuss what longer-term geopolitical trends help businesses to plot a strategy despite being whipsawed by tariff news each day (01:57), a recent and helpful Foreign Affairs article, by Emily Kilcrease and Geoffrey Gertz of the Center for a New American Security (03:21), the recent book “Chokepoints: American Power in the Age of Economic Warfare” by Edward Fishman and his description of the “impossible triad” between economic interdependence, economic security, and geopolitical competition (04:21), relevant historical background on the rise of China after the Second World War and its current oversupply problem (04:54), how severe pressures on businesses in both the U.S. and China will create white collar compliance risks today and enforcement risks tomorrow (07:42), customs evasion enforcement risk under the U.S. False Claim Act (FCA) and the FCA’s definition of “knowledge” (08:06), the importance of dynamic assessments of customs evasion risks (11:25), potential fines and penalties from U.S. Customs & Border Protection (CBP) and U.S. Department of Justice (DOJ) enforcement (12:54), a deeper dive into the FCA’s “knowledge” standard and its similarities to the “high probability” standard under the U.S. Export Administration Regulations (EAR) (16:14), and practical strategies for companies trying to manage these risks (17:50). Then they conclude with another installment, back by increasing popular demand, of Brent Carlson’s “Managing-Up” segment (20:39).

Resources:

Geoffrey Gertz & Emily Kilcrease, “A World Safe for Prosperity How America Can Foster Economic Security,” Foreign Affairs Magazine

Edward Fishman, “Chokepoints: American Power in the Age of Economic Warfare”

Brent LinkedIn

Mike LinkedIn

Mike & Brent’s “Fresh Looks” Series

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Red Flags Rising

Red Flags Rising: S01 E08 – Responding to Congressional Inquiries

Mike & Brent react to recent media reports of several congressional committees demanding information from U.S. companies. They revisit their March 14, 2024, NYU PCCE blog post, “”Expect Some Illumination”: A Fresh Look at U.S. Congressional Hearings in the Era of Sanctions and Export Controls as the New FCPA” (01:21), then discuss common pitfalls to avoid when providing information to Congress, including the importance of thinking critically about how your data could be interpreted and used by Congress (02:28), how information provided by Congress can be shared across the U.S. federal government (03:38), the danger of being distracted by political theater (04:13), the value of having a “red team” (or “blue team,” depending on your political leanings) vet your data with hostile eyes before sending data to Congress (06:48), anticipating and preempting difficult questions that the data might raise (08:06), keeping in mind the geopolitical context (09:05), ensuring that investor relations and communications coordinate with legal and compliance regarding public statements (10:30), and the oversight role of boards of directors (12:49). They conclude with another installment, still by popular demand, of Brent Carlson’s “Managing Up” (14:05).

Resources: 

Mike & Brent’s Prior NYU PCCE Post

Brent LinkedIn

Mike LinkedIn

Mike & Brent’s “Fresh Looks” Series

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Red Flags Rising

Red Flags Rising: S01 E07 – Clarity from Chaos: U.S. Export Controls Enforcement Signals & What to Do About Them

Mike & Brent connect the dots between the Administration’s signals regarding U.S. export control enforcement, recent media reports, and how trade compliance teams can best prepare for what comes next. They discuss the overall climate of uncertainty (01:03), an April 8, 2025 report by Reuters about a potential large U.S. export controls fine in the works (01:35), how companies can best respond to a counterparty being put on the U.S. Bureau of Industry & Security’s “Entity List” (05:47), how to respond to U.S. government outreach or administrative subpoenas (07:27), an April 10, 2025 report by Export Compliance Daily about a potential uptick in administrative subpoenas (11:39), their prior “Fresh Looks” post on responding to government inquiries (13:51), and conclude with another installment of Brent Carlson’s “Managing-Up” (17:38).

Resources: 

Reuters article: Karen Freifeld, “Exclusive: TSMC could face $1 billion or more fine from US probe, sources say,” Reuters (Apr. 8, 2025)

Export Compliance Daily: Ian Cohen, “Gov’t May Be Issuing More Export Control-Related Subpoenas, Industry Lawyer Says,” ECD (Apr. 10, 2025) (subscription required)

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Mike & Brent’s “Fresh Looks” Series

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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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FCPA Compliance Report

FCPA Compliance Report – Navigating the Complexities of FTO Designations and Compliance in Mexico and Latin America

Welcome to the award-winning FCPA Compliance Report, the longest-running podcast on compliance. In this episode, Tom welcomes Tim O’Toole and Matt Ellis from Miller & Chevalier Chartered to discuss the significant implications of President Trump’s executive order designating Mexican drug cartels as foreign terrorist organizations (FTOs).

Tim and Matt elaborate on the heightened compliance risks and operational challenges now faced by companies operating in these regions. The conversation delves into the legal distinctions between Specially Designated Nationals (SDNs) and FTOs, the broad-ranging impact on industries such as agriculture and logistics, and the urgent need for robust risk assessment strategies to mitigate civil and criminal liabilities under U.S. law. They also explore the broader Latin American context and potential collateral consequences for U.S. and Latin American companies amid anticipations of increased regulatory scrutiny and enforcement actions. The discussion concludes with timely observations on recent U.S. Treasury directives aimed at curbing cartel money laundering activities, showcasing the lengths the administration is willing to go to combat these criminal enterprises.

Key highlights:

  • Executive Order and FTO Designation
  • Heightened Risks for Companies in Mexico
  • Complexities of Cartel Influence in Mexico
  • Risk Management Strategies for Companies
  • Broader Implications for Latin America
  • Potential Weaponization of FTO Designation
  • Corporate Compliance and Human Rights

Resources:

Designation of Cartels as FTOs Creates Heightened Risks for Companies Operating in Latin America

Miller & Chevalier

Tim O’Toole

Matt Ellis

Tom Fox

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2 Gurus Talk Compliance

2 Gurus Talk Compliance – Episode 47 – The Chaos Edition

What happens when two top compliance commentators get together? They talk compliance, of course. Join Tom Fox and Kristy Grant-Hart in 2 Gurus Talk Compliance as they discuss the latest compliance issues in this week’s episode!

Stories this week include:

  • Who are we? (Radical Compliance)
  • 9th Circuit upholds Holmes’s conviction. (Reuters)
  • Leveling, not raising. (WaPo)
  • Who wants to go back to Russia? (NYT)
  • Trump revoked Chevron’s license to do business in Venezuela. (WSJ)
  • Two Tech Executives Face Trial Under a Bribery Law Trump Has Put on Hold. (WSJ)
  • Kroger’s CEO resigned abruptly after an investigation into personal conduct. (WaPo)
  • CFTC Offers New Incentives for Companies to Report Their Wrongdoing. (WSJ)
  • 5 steps to take to get a promotion in 2025. (Fast Company)
  • A Florida man poses as an immigration officer at Orlando apartments to check for undocumented residents. (Fox 35 Orlando)

 

Resources:

Kristy Grant-Hart on LinkedIn

Prove Your Worth

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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

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