When most people think of export compliance, images of large multinational corporations come to mind. Universities are in the business of education and they don’t sell products, so why would a university need export compliance procedures?
Since 9/11, the U.S. government has become increasingly concerned with foreign nationals on student visas gaining access through research grants to sensitive information and technology. Because of increased scrutiny, one incentive is the cost of non-compliance. Penalties range from 5 to 10 years imprisonment and fines of $250,000 to $1,000,000. Additional costs include loss of contracts, grants, employees and other collaborative efforts. Some of the recent violations include:
- Professor convicted for allowing unauthorized foreign citizens access to restricted technology in violation of the Arms Export Control Act
- University fined for financial dealings with Iran and Cuba
- Universities cited for failure to obtain licenses for access by foreign nationals to military technology
- University involved in unauthorized export of biological materials
Knowledge is power. University of Tennessee faced its second count of export violation this year because its professors were unknowing violating export laws. Read more about this case from this Denied Party Screening blog.
