1. Which Federal Agencies Review Transactions and Foreign Activities?
A flagged payment or shipment raises a practical question: which rule governs the transaction? Different agencies may review the same activity, but the required response and possible penalties depend on their authority.
How Do BIS and OFAC Investigate Export and Sanctions Violations?
BIS enforces the Export Administration Regulations (EAR), including controls on certain items, software, and technology. OFAC administers sanctions involving prohibited parties, property, and transactions.
| Agency | Focus | Possible Result |
|---|---|---|
| BIS | Controlled exports and technology transfers | Civil penalties or export restrictions |
| OFAC | Sanctioned persons and prohibited dealings | Civil penalties or blocking obligations |
BIS
- FocusControlled exports and technology transfers
- Possible ResultCivil penalties or export restrictions
OFAC
- FocusSanctioned persons and prohibited dealings
- Possible ResultCivil penalties or blocking obligations
OFAC civil liability may be strict, while criminal charges require proof of the relevant offense. BIS and OFAC assess penalties and voluntary disclosures separately. See OFAC sanctions compliance.
When Does Foreign-Directed Work Raise FARA Concerns?
DOJ examines whether a person acted as an agent of a foreign principal in covered activities without registering or qualifying for an exemption. Receiving money from abroad alone does not establish a violation.
- Direction: Review instructions, agreements, and the principal's role.
- Activity: Identify political advocacy, public relations, and related communications.
- Exposure: Distinguish civil registration orders from criminal charges involving willful violations.
Filing late does not erase an earlier willful violation. Review the Foreign Agents Registration Act.
Can CFIUS Delay or Unwind an Acquisition?
CFIUS assesses national security risks in certain foreign investment transactions. It may negotiate mitigation, while the President has authority to block or order divestment in qualifying cases.
- Coverage: Examine control, investment rights, and the business involved.
- Timing: The 45-day review starts when CFIUS accepts a formal notice; further investigation may follow.
- Remedies: Assess mitigation obligations and limits on challenging final action.
Investment review differs from prosecution. See CFIUS compliance.
2. When Can Information Transfers or Trade Routes Lead to Criminal Scrutiny?
An export inquiry can develop alongside a criminal investigation. Suspected concealment or sensitive information transfers invite closer scrutiny, but criminal charges require proof of a specific offense.
How Do Espionage and Trade Secret Charges Differ?
18 U.S.C. § 793 addresses national defense information, subject to the elements of the particular provision. Trade secret offenses may fall under 18 U.S.C. §§ 1831–1832; a foreign connection alone does not prove either crime.
- Information: Identify national defense information or legally protected trade secrets.
- Conduct: Examine access, copying, transmission, and required mental state.
- Procedure: Classified evidence may require special handling before trial.
Classified material can complicate discovery; detention requires a separate judicial decision.
How Do Third-Party Transactions Raise Evasion Concerns?
A distributor may appear legitimate while invoices leave the ultimate buyer unclear. Investigators may compare ownership, shipping, and payment records to trace the transaction.
- Trace: Reconcile counterparties, beneficial owners, routing, and end-use records.
- Preserve: Retain relevant documents when an investigation or litigation is reasonably anticipated.
- Disclosure: Evaluate civil reporting, criminal exposure, and privilege before sharing findings.
Routing alone does not establish evasion. Related requirements appear under export control law.
3. What Should Individuals and Cleared Contractors Review First?
An interview request does not mean an arrest is imminent. A clearance notice raises a different problem: whether access to sensitive work can continue while eligibility is reviewed.
What Matters before Speaking with the FBI?
An FBI agent may request an interview without making an arrest. Miranda warnings generally concern custodial interrogation; materially false statements can create separate federal exposure.
- Status: Clarify whether the interview is voluntary or compelled.
- Representation: Ask an attorney to assess individual and corporate interests.
- Proffers: Check written limits on government use of statements before agreeing.
Having an attorney present does not automatically make every conversation privileged.
What Happens If a Defense Contractor'S Clearance Is Threatened?
A contractor may lose access to classified work before any criminal conviction. DCSA handles eligibility decisions, while appeal routes differ for contractor and other personnel.
- Access: Review personnel permissions, facility requirements, and security office notices.
- Response: Address stated concerns with records and any authorized corrective measures.
- Appeal: Check whether DOHA or a component appeals board handles the decision.
An employer-requested reconsideration differs from an individual appeal.
4. Frequently Asked Questions
Does a federal subpoena mean charges have been filed?
No. Administrative and criminal inquiries can involve subpoenas. The issuing authority and document determine the obligations and available challenges.
Can a company disclose a suspected sanctions violation voluntarily?
Potentially. BIS and OFAC use separate processes; OFAC introduced an online disclosure portal in 2026. Check privilege, timing, and criminal exposure first.
Can an employee retain a separate attorney?
Yes. Individual advice may matter when an employer's response and an employee's interests differ, especially during interviews or internal reviews.
Are internal investigation reports automatically privileged?
No. Privilege depends on the purpose and circumstances of communications. Sharing material outside the protected relationship may create waiver risks.
5. Discuss Federal Investigation Questions with SJKP
SJKP's attorneys can examine agency letters, transaction records, interviews, and possible civil or criminal exposure. The firm can assess disclosure choices, preservation duties, and procedural options where representation is appropriate. Contact SJKP to review the request and relevant records.
08 Oct, 2026
