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Export Control Crackdown: U.S. Enforcement Trends
The Department of Commerce’s Bureau of Industry and Security (BIS) has a strategic role in U.S. national security, foreign policy, and economic interest. With a change in administration in 2025, BIS’s role in U.S. policy has come to the spotlight especially when protecting U.S. technology with military applications in AI, semiconductors, quantum computing, and aerospace components. Recent developments have signaled there will be more enforcement actions, i.e., criminal, and administrative, against China, Russia, Iran, and North Korea, with bigger fines for violations. There will be more scrutiny for businesses and/or individuals who are involved with dual use technologies and have touch points with these countries commercially, academically, and/or professionally.
Here are three (3) key developments:
- Disruptive Technology Strike Force – More Enforcement & Bigger Fines
A task force was established on February 16, 2023, comprised of members from the U.S. Department of Justice, BIS, FBI, and Homeland Security. Their focus is to protect U.S. advanced technology from being unlawfully acquired by nation state adversaries. In 2023, the Defense Criminal Investigative Service (DCIS) was added to the task force to strengthen efforts to protect defense industry technology.[1] In 2024, BIS had 15 criminal cases charging sanctions, export control violations and other offenses related to transfers to China, Russia, and Iran.[2]
In late March 2025, BIS held its annual Update Conference[3], and the Secretary of Commerce, Howard Lutnick, expressed that there would be a “dramatic increase” in enforcement and fines against companies violating the Export Administration Regulations (EAR).
2. Export Control is a National Security Priority in the current Administration
Because the U.S. considers its leadership position in technology to be a national security priority especially for AI, export control is considered a high priority for the current Administration and U.S enforcement agencies. China, Russia, and Iran have been labeled by Secretary Lutnick as the “adversary”, and he stressed companies need to be compliant with the EAR and conduct the appropriate due diligence to ensure they are not in violation of the EAR.
3. Criminal enforcement to be focused on National Security, i.e., Export Control
In President Trump’s Executive Order dated May 9, 2025, re: “Fighting Overcriminalization in Federal Regulations” [4] and U.S. Department of Justice’s Memo dated May 12, 2025, re: “Focus, Fairness, and Efficiency in the Fight Against White-Collar Crime”,[5] the current Administration stressed criminal enforcement and/or regulation would continue for national security matters, i.e., violations of export control laws. On March 26, 2025, BIS signed an expanded partnership MOU with Homeland Security Investigations to increase collaboration and leverage additional authorities under the Export Control Reform Act.[6] It appears the U.S. Department of Justice prosecutions and/or resources will continue to place national security matters, i.e. export control, as a matter of priority.
How can Guidepost Solutions help?
Guidepost Solutions is a global leader in providing compliance and due diligence solutions for clients interested in U.S. export control regulations and/or policies. If your company is proactively considering improving its current compliance and/or due diligence program or has received notification from BIS of possible violation(s) of the EAR, Guidepost Solutions’ trade and national security compliance professionals can help with the following:
- Review current policies, procedures, due diligence, and the company’s level of compliance with U.S. export control regulations and policies.
- Audit (as an independent auditor) the company’s export control and management program to review potential violations and provide recommendations for compliance with U.S. export control regulations and policies.
- Conduct internal investigations and reviews to determine root causes to any potential problematic concerns related to national security regulatory matters.
[1] https://www.justice.gov/archives/opa/pr/fact-sheet-disruptive-technology-strike-force-efforts-first-year-prevent-sensitive
[2] https://www.bis.gov/media/documents/bis-export-enforcement-year-review-2024
[3] https://www.bis.gov/update-conference-2025
[4] https://www.whitehouse.gov/presidential-actions/2025/05/fighting-overcriminalization-in-federal-regulations/
[5] https://www.justice.gov/opa/media/1400141/dl?inline
[6] https://www.ice.gov/news/releases/hsi-us-department-commerces-bureau-industry-and-security-sign-new-mou-expand
Christopher R. Kim
Senior Managing Director
Christopher Kim is a senior managing director at Guidepost Solutions, and previously served as a senior investigator at the World Bank Group, where he planned, managed and directed multi-disciplinary teams in the audits of multinational corporations alleged to have been involved in fraud, corrupt and/or collusive practices. Mr. Kim also coordinated numerous World Bank sanction complaints and/or cases with the other multi-lateral development banks and UN agencies. He also managed a high profile investigation involving a World Bank staff member and parallel criminal investigations with several European criminal authorities.
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