In June 2023, the Five Eyes partners which includes the United States, the United Kingdom, Canada, Australia, and New Zealand formally agreed to deepen their collaboration on export control enforcements in order to enhance each country’s ability to protect their national security interests. Although these allied countries have shared intelligence regarding export control violations for decades, the recent agreement to formalize their cooperation is another step towards improving the effectiveness of export control regulations and deterring the circumvention of existing measures.
Matthew Axelrod, the U.S. Assistant Secretary of Commerce for Export Enforcement said in an official press release that through this joint effort member countries “hope to drive additional enforcement outcomes…including detentions, penalties, and public identification of diversionary actors.” In an era already rife with disruptions and constantly evolving regulatory landscapes, this agreement will further expand the export controls proliferating the world of international trade. As such, export compliance is mission critical for organizations engaged in cross-border trade. They must be diligent and detailed in their effort to comply with export controls to ensure they do not inadvertently contravene regulatory requirements, especially in the face of dynamic rules and heightened scrutiny.
Effective export compliance management relies on real-time updates and intelligence on regulations in addition to technology and strategy required to act on them. To successfully monitor regulatory changes and maintain ongoing compliance, organizations need robust export control management tools such as advanced denied party screening software. The importance of using robust export compliance solutions can be summed up in an organization’s continued ability to satisfy commitments to customers and other stakeholders without the risk of penalties, business interruptions, or damage to the brand.
This is an excerpt of an article in the Descartes Visual Compliance Export Compliance Journal which goes into more detail on the impact of the 5 eyes agreement on global export controls and how businesses involved in international trade can position themselves to successfully navigate the changes on the horizon. Read the full article here.