Rapid Pace of Export Controls Makes It 'Easier to Be Caught,' Lawyer Says

Companies should be constantly assessing their export control compliance procedures because of the unprecedented pace of regulatory changes, which makes it “easier to be caught,” said Tamer Soliman, a Mayer Brown trade lawyer, speaking during a law conference hosted by the law firm last week. He said the government is “scrutinizing more and more transactions,” particularly as it tries to target Russian sanctions evasion attempts.

“That puts the burden on industry to conduct heavier due diligence, to really look at your own programs,” he said. “If you're in the private sector, I think one of the messages for you is: consider, scrutinize your own program. Is it sufficient? Is it evolving as these rules evolve?”

Soliman, who said he’s been an export control lawyer for about 25 years, said the current changes are unprecedented. “While I've seen a number of other periods of significant change,” he said he hasn’t “seen anything in terms of the scale of change that we've seen in this space, the pace of change, and the change that is as consequential as we've seen just in the last few years.”

He expects that pace to continue, particularly as the government tries to fill “gaps” in its current authorities. Soliman specifically pointed to the White House’s work on a potential outbound investment screening regime, which is intended to capture outward flows of sensitive technology and expertise that aren’t restricted by export controls (see 2305180065 and 2209140041). “We're seeing a concerted effort within the government to look at where the current authorities stop, where other authorities begin and what the gaps are between them,” he said. Board members and “senior management teams cannot ignore this space.”