A new U.S. executive order significantly raises Russia-related compliance risks for foreign banks that may have thought they weren’t subject to U.S. sanctions authorities, law firms said this month. The order also could lead to new risks for U.S. businesses, the firms said, which may need to conduct more due diligence on any foreign financial institutions with ties to their supply chains.
Businesses and industry lawyers should expect to see an increase in Foreign Corrupt Practices Act enforcement this year, especially as DOJ more frequently uses data analytics to find possible violations, said Dan Kahn, the former chief of DOJ’s FCPA unit.
Members of the U.K. Parliament this week questioned whether the government should be imposing more restrictions on China, including through human rights sanctions on Hong Kong officials and export restrictions on a broader range of Chinese technology companies. They also urged the U.K. to share the results of a possible review of its arms export policies toward Israel, which at least one member said hasn’t been transparent.
The U.S. fined German software company SAP SE more than $200 million for violating the Foreign Corrupt Practices Act, saying it bribed government officials in South Africa, Malawi, Kenya, Tanzania, Ghana, Indonesia and Azerbaijan to secure business contracts. The company agreed to a nearly $100 million settlement with the SEC and faces a $118.8 million criminal penalty, along with a forfeiture, as part of a deferred prosecution agreement with DOJ.
The Commerce Department plans to announce a “department-wide” strategy in the “weeks ahead” that will address its major priorities in national security, Deputy Commerce Secretary Don Graves said on Jan. 9.
The U.S. shouldn’t rush to impose new export controls on sensitive lidar technology, experts said, mostly because American firms may not have chokepoints over lidar and the restrictions may hurt U.S. export revenue.
Rep. Mike Gallagher, R-Wis., chairman of the House Select Committee on China, has urged the Commerce Department to consider placing the United Arab Emirates-based artificial intelligence firm Group 42 Holdings (G42) on the Bureau of Industry and Security’s Entity List, citing possible export control risks from the company’s work with China’s military, intelligence services and state-owned companies.
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The Commerce Department is accepting nominations for a relaunched industry advisory committee that will provide input on U.S. export control regulations.
The U.S. should push for export controlled semiconductors to be installed with a mechanism that would automatically bar those chips from being used in ways that violate U.S. export restrictions, researchers said in a new report this week. They said this would significantly aid export enforcement efforts and could potentially allow compliant chip companies to sell to a broader range of customers.