Export Compliance Daily is providing readers with the top stories from last week in case you missed them. You can find any article by searching for the title or by clicking on the hyperlinked reference number.

The U.S. unsealed an indictment this week against a Russian citizen and Hong Kong resident who helped illegally procure U.S. dual-use microelectronics with military applications for Russian end users. Maxim Marchenko used a network of shell companies to source the items from the U.S., DOJ said, giving false information to American distributors to assure them the products weren’t destined for Russia. Marchenko was charged with conspiring to defraud the U.S. along with money laundering, wire fraud and smuggling offenses.

The Bureau of Industry and Security needs more resources to investigate export control violations, Commerce Secretary Gina Raimondo said this week. She also said a potential government shutdown would be “crushing” for the agency’s enforcement efforts and work on semiconductor export regulations.

A new Defense Department policy memo and guidance on foreign influence within American research institutions could exacerbate already complex export control due diligence challenges at universities, said Jackson Wood, director for industry strategy at Descartes. It also could lead to larger compliance risks for universities pursuing DOD-funded research, said Kit Conklin of compliance risk advisory firm Kharon.

The Committee on Foreign Investment in the U.S. already has issued two civil monetary penalties this year and plans to impose more before 2024, said Paul Rosen, the head of the Treasury Department’s Office of Investment and Security. Rosen also said CFIUS is increasing its on-site visits to monitor compliance with mitigation agreements and is preparing to formally “refine” regulations surrounding the committee's enforcement powers, case review functions and efforts to track own non-notified transactions.

Republicans are asking the Biden administration to strengthen export controls against Huawei and Semiconductor Manufacturing International Company after Huawei this month unveiled a new smartphone that may have been made through means that violated U.S. export restrictions (see 2309120005). They said both technology companies should be subject to “full blocking sanctions” and their executives should face criminal investigations, adding that the Commerce Department should revoke all of their existing license applications, add all their subsidiaries to the Entity List and take other measures to cut off a broad range of shipments to both firms.

The U.S. this week announced new Russia-related sanctions, designating more than 150 Russian business people, government officials, financial institutions, technology suppliers and foreign companies for supplying Russia with controlled goods or aiding the government. The sanctions include nearly 100 new designations imposed by the Treasury Department and more than 70 designations by the State Department and are designed to undermine Russia’s military supply chains, Treasury Secretary Janet Yellen said.

Treasury Secretary Janet Yellen said the Committee on Foreign Investment in the U.S. is doubling down on enforcement, warning industry lawyers about potential subpoenas or penalties for violating the committee's rules or mitigation agreements. Yellen’s comments came one day after Paul Rosen, who heads CFIUS, said the committee recently hired additional enforcement officials and may add more.

The upcoming U.S. outbound investment restrictions (see 2308090066 and 2308100045) should be overseen by the Office of Foreign Assets Control, not the agency that heads the Committee on Foreign Investment in the U.S., Republicans said this week. Several lawmakers, including Patrick McHenry, the top Republican on the House Financial Services Committee, said the new outbound investment restrictions are similar to a sanctions program as opposed to the case-by-case review process overseen by CFIUS for inbound investments, and said OFAC is better suited to prevent China from benefiting from sensitive American investments.

The Census Bureau is mulling whether to nix a proposed country of origin reporting requirement in the Automated Export System or to scale back the requirements under a “phased-in” approach that would cause less of a burden for export filers, said Gerry Horner, chief of the agency’s trade regulations branch.