The State Department approved a $445 million military sale to Kuwait, the Defense Security Cooperation Agency said July 1. The sale includes “Heavy Tactical Vehicles” with support and related equipment. The principal contractor will be Oshkosh Defense LLC and the subcontractors will be Fontaine Trailers and Etnyre.

The U.S. and Australia will begin negotiating a bilateral Technology Safeguards Agreement to better allow industry cooperation and exchange of sensitive technologies and data, Australia’s foreign affairs ministry said July 1. The TSA will “set out principles under which U.S. companies can collaborate with Australian firms” in the civil space sector and transfer various technologies. Christian Porter, Australia’s minister for industry, science and technology, said the TSA will help “protect the movement of sensitive technologies and goods with one of our closest allies.”

The State Department plans to renew the charter for its International Security Advisory Board, which advises the agency on arms control, nonproliferation, emerging technologies and other national security issues, the State Department said in a notice. The board includes national security experts with scientific, military, diplomatic and political backgrounds. Although it usually meets quarterly, it didn’t convene in 2018, 2019 and 2020 due to a “review of its status” by the Trump administration. The State Department will renew the board for two years.

The Financial Crimes Enforcement Network issued its first set of national anti-money laundering and anti-terrorism financing priorities, identifying corruption, cyber crime, drug trafficking and other activities that pose the biggest threats to the U.S. The priorities, issued June 30 and required by the Anti-Money Laundering Act of 2020, will be followed by a set of regulations and revisions to the Bank Secrecy Act, several U.S. agencies said in a joint statement.

U.S. technology exports declined by about 5% last year to $335 billion, ending a streak of three consecutive years of growth, according to a June 30 report from the Computing Technology Industry Association. The drop in exports was partly caused by the “severity” of the COVID-19 pandemic. Overall, the technology industry “held up relatively well,” CompTIA said, and technology exports “were steady” for most of the year. Technology products ranked third among the U.S.’s top manufactured goods exports, behind chemicals and transportation vehicles.

KPMG recently surveyed a range of companies about their export control and sanctions compliance programs to determine how they organize those programs, which regulations and regions are their focus, and how they manage compliance risks. The survey, released last month, shows that compliance officials often manage multiple export regimes and nearly 90% of the respondents have a person or team “specially dedicated” to export compliance. About 25% don’t have or don’t know if they have a formal compliance program. In addition, about 99% said U.S. regulations affect their compliance, while 72% said they are affected by European Union laws and 46% by Chinese regulations. The survey also includes company responses to questions about risk assessments, training, screening activities and export licensing responsibilities.

Large ocean carriers are continuing to use their influence to cause “record high freight rates” for American shipping companies, the Florida Customs Brokers & Forwarders Association said in a letter to the Federal Maritime Commission this month. The association also said that carriers are “frequently” gathering customer information “through their [ocean transportation intermediary] client and then engage in direct competition,” which violates the Shipping Act. “The negative economic impact is real for both OTIs and shippers alike,” the FCBFA said.

The Defense Department June 28 published an unclassified list of entities that qualify as Chinese military companies. DOD is required to publish a list annually through 2030 under the 2021 National Defense Authorization Act. President Joe Biden recently expanded a Trump-era policy that banned investments in Chinese military companies (see 2106030067). The State Department listed the following entities:

While some countries have loosened their more strict foreign investment review tools as they emerge from the COVID-19 pandemic, the majority of screening regimes are here to stay, Baker McKenzie and the International Forum of Sovereign Wealth Funds said in a June report. The report, which outlines strategies for navigating the new foreign investment landscape, calls the increasing scrutiny of foreign direct investment (FDI) a “global phenomenon.”

The State Department approved three sales to the Philippines worth more than $2.5 billion, the Defense Security Cooperation Agency said June 24. The first sale, worth $2.43 billion, includes “F-16 Block 70/72 Aircraft” and related equipment. The principal contractor will be Lockheed Martin. The second sale, worth $120 million, includes “AGM-84L-1 Harpoon Air Launched Block II Missiles” and related equipment. Boeing will be the prime contractor. The third sale, worth $42.4 million, includes “AIM-9X Sidewinder Block II Tactical Missiles” and related equipment. The prime contractor will be Raytheon Missile Systems Company.