Last month, German software behemoth SAP SE (“SAP”) agreed to pay more than $8 million to settle “thousands of export violations spanning six years” with three different U.S. Government agencies. Here are two key learnings that have broad applications for many organizations in the United States and abroad.

FLIR Systems, Inc., agreed to a settlement with the Department of Commerce. The settlement alleges FLIR made inaccurate or incomplete representations, statements, or certifications to BIS and other U.S. Government agencies regarding a certain anti-tamper mechanism while seeking an official determination from the Department of Commerce on a newly developed product.

On April 27, 2021, the Directorate of Defense Trade Control (DDTC) released the contents of the latest Consent Agreement imposed on Honeywell International, Inc., who agreed to the settlement of the civil penalty of $13M for thirty-four violations of the ITAR specific to the unauthorized export or retransfer of technical data related to USML Categories VIII(i), XI(d) and XIX(g).

On Thursday April 15, 2021, the Biden Administration implemented various sanctions directed at the Russian Federation.  Specifically, President Biden issued Executive Order (EO) 14024: Executive Order Blocking Property With Respect To Specified Harmful Foreign Activities Of The Government Of The Russian Federation.

On April 8, 2021, the Biden Administration added seven entities to the Entity List, all based in China. In the last 3 years, 80% of restricted entities added were Chinese Entities. When any changes arise in export compliance, it is important for exporters to review how those changes affect their current program and determine how to proceed to best protect their company.

Fans of the movie “Office Space” are familiar with the dreaded TPS Report.  Recently, the U.S. Bureau of Industry and Security (BIS) finalized its plans to reduce reporting requirements for certain encryption items.

In today’s digital economy, many people would agree that cryptocurrency is the Wild, Wild West. But the landscape may be changing. As more institutional investors dip their toes into the “crypto-waters,” we can expect to see “the regulators” not far behind. 

As the whole world is seemingly swept-up in the “crypto craze,” the Treasury Department’s Office of Foreign Assets Control (OFAC) just issued a stark warning to those companies whose businesses involve digital currency.