On November 3, 2021, the Commerce Department’s Bureau of Industry and Security (“BIS”) issued a final rule (“Final Rule”) adding the following four entities to the Department of Commerce Bureau of Industry and Security (“BIS”) Entity List: Candiru (Israel), NSO Group (Israel), Computer Security Initiative Consultancy PTE (Singapore), and Positive Technologies (Russia). The addition of the four entities comes after the October 21, 2021 publication of an interim rule by BIS establishing controls on the export, re-export, and in-country transfers of items that may be used for malicious cyber activities and is part of the ongoing effort by the Biden-Harris Administration to combat the use of digital tools for repression.  

According to the Final Rule, Candiru and NSO Group were added to the Entity List for developing and supplying spyware to foreign governments in order to maliciously target government officials, embassy workers, business people, journalists, activities and academics. Computer Security Initiative Consultancy PTE and Positive Technologies were added to the Entity List for the misuse and trafficking of cyber tools used to gain unauthorized access to information systems and posing a threat to the privacy and security of individuals and organizations worldwide.  A license will be required from BIS to export, reexport, or transfer (in-country) to or through these parties any items subject to the Export Administration Regulations (“EAR”), subject to a policy of denial.

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Mr. Coward focuses on outbound trade compliance matters, including the extraterritorial application of US law, particularly US export control laws, anti-boycott regulations and trade sanctions/embargoes maintained by the US government against various countries. In addition, his practice covers issues of corporate conduct such as the application of the Foreign Corrupt Practices Act and foreign bribery laws. He provides international transactional advice; assistance in the design and implementation of corporate compliance programs, compliance audits, and internal investigations; and representation in enforcement proceedings.

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Ms. Test advices clients on issues relating to licensing, regulatory interpretations, enforcement actions, internal investigations and compliance audits, as well as the design, implementation and administration of compliance programs. She also advises clients on the extra-territorial application of trade compliance-related regulations in cross-border transactions.

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