Live Webinar: Mastering the New Era of Export Controls: Understanding BIS’s ‘High Probability’ Standard and Mitigating Enforcement Risks

In response to the growing significance of export controls, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) has forecasted that export controls are now the “new FCPA” (Foreign Corrupt Practices Act). The introduction of the “high probability” standard for knowledge marks a critical shift in compliance and enforcement practices. As companies navigate an increasingly complex regulatory landscape, understanding how to interpret and apply this standard—particularly when responding to “red flags” such as BIS warning letters—is crucial to managing compliance risks and avoiding enforcement actions.

This webinar will provide in-depth analysis on the evolving regulatory environment, with practical insights into how organizations can adapt to this new enforcement framework.

Notable dates:
•  July 10, 2024: BIS issued important guidance on how businesses should approach the “high probability” standard when addressing “red flags”.
•  August 15, 2024: BIS followed this with its first-ever enforcement action relying upon the “high probability” standard, in which it imposed a $5.8 million penalty.
•  October 9, 2024: BIS issued guidance to financial institutions featuring the “high probability” standard.
•  December 18, 2024: The majority staff of the U.S. Senate’s Permanent Subcommittee on Investigations issued a report recommending that BIS focus on applying the “high probability” standard in its enforcement actions. This points to a new enforcement wave on the horizon driven specifically by the “high probability” standard.

Topics:
•  Understanding the “high probability” standard: its origin, significance, and why it matters more than ever.
•  How BIS is laying the groundwork for “high probability” enforcement and what this means for your organization.
•  Why traditional compliance responses are no longer sufficient in the face of evolving enforcement practices.
•  The risks and consequences of shipping items or sharing sensitive information when faced with unresolved red flags under the “high probability” standard.
•  Practical strategies for mitigating enforcement risks by applying this new standard in your compliance decisions.

Course Objectives:
•  Equip participants with the knowledge to anticipate BIS enforcement trends in this new era where export controls are the “new FCPA”.
•  Learn effective strategies for responding to BIS enforcement actions under the “high probability” standard.
•  Understand how to make and defend subjective decisions regarding the allocation of finite time and resources to best mitigate enforcement risks.

Join us for this crucial webinar to ensure your company stays ahead of the curve in export controls compliance and enforcement.

This webinar will include PowerPoint slides and video and commentary from Mike Huneke and Brent Carlson, who have written and spoken frequently on these topics. Each registrant, even if unable to attend live, will have access to the presentation, certificate of completion, speaker contact information for follow-up questions, and access to the webinar recording within 1-2 business days after the webinar airs. Webinar participants are invited to submit questions during the webinar and the final 30 minutes will be allotted to answering attendee questions.

Speaker Bios:

Michael H. Huneke is a Co-Chair of the Sanctions, Export Controls, and AML practice group and a partner in the Global Investigations, Enforcement and Compliance practice group at Hughes Hubbard & Reed LLP. Mike helps clients to identify and assess their risks of enforcement for export controls violations and to investigate, remediate, and otherwise resolve reports or allegations of such violations. Full bio here.

Brent Carlson is a corporate compliance and anti-fraud expert and Director with BRG’s Global Investigations practice where he applies elegant solutions to navigate rapidly changing geopolitical and regulatory risks. He is fluent in Mandarin Chinese. Full bio here.