On May 22, 2024, the Department of Justice (“DOJ”) made a groundbreaking announcement that it declined prosecution of a biochemical company based on the company’s prompt voluntary self-disclosure of an employee’s export control violation and the company’s “exceptional” cooperation with DOJ’s National Security Division (“NSD”), the DOJ subcomponent responsible for investigating and prosecuting economic sanctions and export control violations (among other national security-related matters).

This is the first declination the NSD has announced since issuing its new corporate enforcement policy (“NSD Enforcement Policy”) in March 2024.  As discussed in our prior articles, DOJ announced a shift last year toward prioritizing investigation and enforcement against corporations for economic sanctions and export control violations, with Deputy Attorney General Lisa Monaco famously announcing that “sanctions are the new FCPA” and declaring that corporate enforcement in these areas is now a top DOJ priority.  This declination provides valuable insight into how the NSD will handle corporate enforcement of these matters and, importantly, signals a willingness to give meaningful credit to companies that self-disclose and cooperate in the investigation of violations in this area.Continue Reading First-Ever Declination Under DOJ NatSec Corporate Enforcement Policy: DOJ Signals Willingness to Meaningfully Credit Voluntarily Self-Disclosing and Cooperative Company Involved in Export Control Violations