DOJ Declines $70 Million Export Control Case Under New Department-Wide Corporate Enforcement Policy

On June 17, the Justice Department announced the National Security Division’s first criminal declination under the Department-wide Corporate Enforcement Policy, which went into effect in March of this year. Under the policy, corporations that voluntarily self-disclose criminal conduct, cooperate with the investigation, remediate the misconduct, and forfeit proceeds may receive a declination from the government with respect to criminal prosecution of the company.

In the matter announced by DOJ, the government declined to prosecute Robert Bosch GmbH (Bosch) after the company voluntarily disclosed that two of its non-U.S.-based subsidiaries had exported more than $70 million worth of sensor products and software to an “Entity Listed” company in the People’s Republic of China. In addition to making the disclosure, Bosch cooperated with NSD’s investigation, made organizational changes, and disgorged its profits. Bosch was able to achieve this result even though enforcement of export control and sanctions laws remains a top DOJ priority.

If you have questions about self-disclosure, the Corporate Enforcement Policy, or export control and sanctions enforcement, please contact the author.

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