US, Allies Aiming to Expand Joint Export Control Investigations

Export enforcement officials from the U.S., Australia, Canada, New Zealand and the U.K. met in Washington this week, where they warned businesses about complying with export controls against Russia and committed to expanding joint investigations to penalize violators.

The countries -- which make up what the Bureau of Industry and Security called the Export Enforcement Five, or E5 -- convened Sept. 17 and 18 for their second annual meeting on Russia export restrictions. BIS said the countries issued a “renewed pledge” to stop the diversion of sensitive technologies and materials to Russia, and agreed to “enhancing enforcement-related information sharing and capacity building.”

The countries also discussed doing more outreach with companies and publishing more guidance to “prevent diversion, and expanding joint investigative efforts to impose penalties that deter and redress violations of our coordinated export controls on Russia,” BIS said.

The group has made “significant strides” since it was first formed last year (see 2306280025), the countries said in a joint statement, including by sharing information on “mutual targets and technologies of interest.” That has led to seizures of goods that Russia or Russian front companies have tried to buy for its military, they said.

The E5 is currently sharing Russia-related intelligence and is keeping each other informed of new sanctions designations -- including additions to the Commerce Department’s Entity List -- and working to harmonize their receptive export control lists, the statement said. The countries added that they “recognize the need for continued dialogue and engagement with industry stakeholders to foster a culture of compliance and responsible business conduct.”

“We reinforce the requirement for businesses to uphold their corporate social responsibility commitments and to cooperate with relevant authorities in ensuring compliance with our respective export control frameworks,” they said.

Matthew Axelrod, the top BIS export enforcement official, said the group’s work highlights the “powerful impact that enforcement coordination can have in impeding” Russian purchases of dual-use items for its military. The E5 has “laid a strong foundation for continued effective global enforcement in support of our common national security interests,” he said.