Bosch Declination Shows NSD "Leaning In" to New Corporate Enforcement Policy

Global Investigations Review quoted Steven Fagell, co-chair of Covington's International Trade Controls Practice, in an article examining Bosch's $36 million settlement over restricted microchip exports and what it signals about the U.S. Department of Justice National Security Division's approach to its revised Corporate Enforcement Policy (CEP).

Steve explained that the resolution demonstrates the National Security Division's willingness to utilize the new policy framework to encourage voluntary disclosures, even where a company disputes that criminal conduct occurred. He noted that the matter is "an example of the National Security Division leaning into the new corporate enforcement policy," adding that NSD appeared to view a public CEP declination as appropriate despite acknowledging Bosch's position that no crime had occurred.

Discussing the practical implications of the resolution, Steve described the outcome as a "win-win for everyone," noting that both NSD and Bosch were able to conserve resources through an early resolution. He observed that Bosch benefited from NSD's decision not to seek additional monetary penalties beyond the civil fines already committed to the Bureau of Industry and Security (BIS).

Steve also highlighted the broader message the settlement sends to industry, stating that the resolution underscores NSD's interest in receiving voluntary self-disclosures involving potential criminal conduct in the trade controls space. He expressed hope that NSD will continue to offer declinations to companies that voluntarily self-disclose and satisfy the requirements of the Corporate Enforcement Policy.

Later in the article, Steve emphasized that practitioners will be watching closely to see whether NSD continues to apply the policy broadly, including in matters where evidence of misconduct may be more significant, provided companies meet the CEP's disclosure, cooperation, and remediation requirements.