In an effort to fortify national security through vigorous corporate enforcement, the US Department of Justice (DOJ) appears increasingly committed to prosecuting corporate crimes that have national security implications. This focus marks a defining characteristic of the DOJ’s work under the Biden Administration.
The National Security Division (NSD) of the DOJ seems to be directing an unprecedented amount of resources to identify, investigate, and address cases of corporate misconduct which could compromise or risk national security. According to Principal Deputy Attorney General Marshall Miller, the DOJ is “surging resources to investigate corporate misconduct involving national security violations.”
While such efforts are not new, the level of commitment and coordination shown in recent months is striking. The NSD is now weaving together threads from various fields, such as export control, trade sanctions, cybersecurity, and foreign influence, to construct a more encompassing enforcement approach. The underlying intention is to prevent corporations from indirectly, whether inadvertently or intentionally, empowering foreign adversaries.
This clear emphasis on national security threads a tight nexus around the private sector, potentially shaking up concerns around compliance and risk management for corporations. The ripple effects of this approach will likely be felt across different industries and will call for momentous resistance testing of existing frameworks. Inevitably, corporate enterprise risk management and general counsels will need to remain vigilant in the face of this reinforced focus on national security in the corporate world.
Lawyers and legal professionals can expect to see an uptick in scrutiny of their clients’ business dealings, especially those involving international trade and technology transfers. The message from DOJ is clear: Any corporate crimes with potential national security implications will be treated as a prime target in DOJ’s crosshairs.