Although the Biden administration appears to be leaning toward a narrower outbound investment screening mechanism than previously expected, that doesn’t mean the tool will remain narrow indefinitely, former U.S. national security officials cautioned this week. They also said they expect implementation to be challenging, particularly as the government tries to define specific technologies outbound reviews should capture.
DOJ this week released its revised criminal corporate enforcement policies for voluntary self-disclosures, outlining new criteria companies must meet to qualify for declinations even in cases where there are aggravating factors. The new updates, which are the “first significant changes” to the Criminal Division’s corporate enforcement policies (CEP) since 2017, offer companies “new, significant, and concrete incentives to self-disclose misconduct,” Assistant Attorney General Kenneth Polite said, speaking at Georgetown Law Center. He also said they give companies incentives to “go far above and beyond the bare minimum when they cooperate with our investigations.”
The top Republican on the House Foreign Affairs Committee said the Commerce Department hasn’t yet provided “acceptable responses” to oversight questions about the agency’s technology export controls. In a letter sent last week to Commerce, Rep. Michael McCaul, R-Texas, said the House committee may “use the authorities available to it to enforce these requests as necessary, including through compulsory process.”
U.S. and Japanese officials this week said they are hopeful the two countries will soon align their semiconductor export controls against China, adding to optimism within the Commerce Department that U.S. allies will eventually agree on the chip restrictions. The U.S. and Japan have made “progress” during recent talks, Japanese Ambassador Koji Tomita said, adding that they could reach more concrete results shortly.
The Energy Department issued a final rule this month that will allow it to impose monetary penalties for illegal exports of certain nuclear items, including technology. The rule implements a provision in the FY 2019 National Defense Authorization Act that clarified DOE’s ability to impose penalties for violations of Part 810 of the Atomic Energy Act, the agency said, which places controls on exports of “unclassified nuclear technology and assistance.” The agency also issued a set of frequently asked questions to provide guidance on the change.
The U.K. last week declined requests from Parliament to disclose more information about export control violations, saying it doesn’t believe the transparency will aid compliance or boost voluntary disclosures. The U.K. also said it’s bound by certain “confidentiality” requirements, including rules that limit the Department for International Trade’s Export Control Joint Unit (ECJU) from releasing names of companies that have violated export restrictions.
The Bureau of Industry and Security finalized new export controls on four dual-use marine toxins after the restrictions were agreed to at the multilateral Australia Group (AG). BIS also announced other export control changes made by the AG, including revisions to clarify controls on certain “genetic elements and genetically modified organisms” and the “scope of the exclusion that applies” to certain medical isolators. The agency also updated the “nomenclature” of certain bacteria and fungi, and clarified the definition of “disinfected” as it applies to certain biological equipment. The changes take effect Jan. 17.
Members of the U.K. Parliament are lobbying for the creation of a “dedicated select committee” on arms export controls. The current committee structure doesn’t allow lawmakers to devote enough time and resources to export control issues, they said, and limits their ability to scrutinize government export regulations, including licensing and control decisions.
The U.S. should allow research labs working on sensitive technologies, including artificial intelligence, to continue operations in China despite new export controls limiting their activities, technology policy experts said in a report this week. They also said the U.S. should create a new research security institution to help academia and industry work through “ethically or geopolitically difficult questions” on research security.
The Office of Foreign Assets Control published guidance this week on a September general license that expanded the types of internet and communications services and exports that can be provided to Iran (see 2209230037). General License D2 made several “key changes” to GL D1, OFAC said in a new frequently asked question, including language to “expand and clarify the range” of U.S. software and services that can be provided to Iranians.