Why HR-export control alignment matters – now more than ever

As export controls grow increasingly complex, and the consequences of non-compliance become more severe, UK companies require stronger and more strategically aligned HR support. Teams need to understand the crucial role they play, from managing compliance to employment and training. 

HR teams are now being called upon – not only to understand evolving regulations and respond to geopolitical uncertainty – but also to be able to navigate government guidelines and advice, which are often convoluted and confusing. 

When combined with a general lack of awareness of export controls, this situation can be a minefield. 

For example, the multijurisdictional rules that impact UK companies sees elements of the US export control regime, which are based on nationality, out of step with our domestic anti-discrimination rules. HR teams therefore need to strike the balance between a) asking whether your new potential hire is of a nationality authorised to access controlled items, while b) avoiding discrimination, and thereby preventing conflict with UK data protection laws. This extends to being responsible for everything from the screening of visitors through to managing disciplinary action and reporting for violations.

Many of our clients don’t know they may be breaking international laws by allowing employees and contractors with dual or third county nationalities to access controlled items or technology.

This has become even more relevant with increased tensions in the Middle East, resulting in an increased focus on national and international security. Thus, export controls are currently under heightened scrutiny, enforcement measures have been increased, and rules are increasingly complex.  

The onus is on HR to stay up to date with regulatory changes and expanding sanctions and restrictions, in order to avoid severe penalties. And it is within this landscape that the team’s expertise in training, policy development, and fostering a culture of accountability proves indispensable. HR’s role in aligning people practices with international trade requirements positions it as a critical operational partner in managing regulatory and reputational risk.

How clearBorder can help

clearBorder offers proactive and reactive support to help businesses avoid the severe penalties associated with non-compliance, which can include significant fines, license revocations, goods seizure, and even imprisonment.

In essence, we act as an external expert resource that empowers UK companies (including their HR departments), to build robust and compliant export control frameworks. By providing the necessary knowledge, tools, and support, we help HR play its vital role in navigating the complex landscape of international trade regulations.

Moreover, we can also assist in developing internal compliance programmes and auditing a company’s Export Management and Compliance Programme (EMCP), which will include policies and procedures that HR must implement and enforce.

The specifics: involvement, direction and guidance from HR may include:

Political and regulatory volatility: 

Growing geopolitical tensions are continuously influencing and increasing the expansion and impact of global sanctions. This is particularly relevant with regards to the US, and “Trump’s Tariffs” creating uncertainty and a nervousness that echoes right around the trading world. US rules will be particularly challenging for HR in areas such as discrimination and data protection. 

Companies must screen visitors, staff, and business partners to avoid engaging with restricted persons or entities, and adopt a culture of compliance to keep on top of regulatory requirements – as enforcement and scrutiny are on the rise. 

For example, if new items are controlled or expanded, or sanctions/restrictions are introduced, it could mean new and/or updated screening is needed for existing and new employees. If new nationalities are consequently blocked, the hiring process may need updating, or access may be denied to certain foreign nationals working on particular projects. 

This may result in new roles or projects needing to be found, or wider personnel challenges such as redundancy – which brings in the added challenge of working within UK employment laws. HR need to be informed around all of this, through either checking control list updates themselves, or by a responsible export control specialist.

Increased fines: 

The Export Control (Amendment) Regulations 2025 have raised maximum fines for certain offenses, making robust internal controls more critical than ever before. [1]

For the HR Manager, this means they will – or at least, they should – have core Export Compliance responsibilities, and need to work alongside the Export Control Manager to ensure up-to-date and robust policies and procedures are in place, along with required and relevant training. 

Policies, procedures and training might include:

• Ensuring the hiring process is compliant with international export controls, and screening prospective employees against Restricted Party Lists

• Maintaining records as required by applicable export control laws, regulations, licences and other authorisations

• Organising export control training for all employees and contractors, including refresher courses and specialist training as required, and updating handbooks and supporting documentation

• Preparing non-disclosure statements (or equivalent) for employees to sign as part of authorisation to access UK and US controlled hardware, software, and technology

Employee awareness and training: 

As many violations stem from a lack of employee awareness or human error, HR is key in developing and delivering comprehensive training programmes. This is to ensure all relevant employees understand what, for example, constitutes a controlled item or technology, applicable regulations, how to identify red flags, and the consequences of non-compliance. 

In addition, training can significantly reduce the risk of manual errors that are often the cause of costly disruption and potential fines. 

Compliance in increasing complexity and risk:

Dual-Use Items: Many companies may not realise that their products or technologies fall under dual-use regulations. HR can help ensure that product development and sales teams are aware of these classifications.

Supply Chain Scrutiny: Increased scrutiny on supply chains requires companies to understand end-users and end-uses of their products. HR can support due diligence on personnel involved in these stages.

Reputational Damage: Beyond legal penalties, non-compliance can lead to significant reputational damage, impacting a company’s ability to attract and retain talent and business partners. HR has a vested interest in protecting the company’s reputation.

“Deemed exports” and intangible transfers: 

From an operations perspective, it’s critically important to note that US export controls include the concept of “deemed exports” – which is not present in UK regulations. 

Since US rules have extraterritorial reach and can be enforced in the UK, compliance is crucial. Therefore, HR departments must ensure that all employees are legally authorised to access any controlled information or items relevant to their work within the company.

Export controls apply to “deemed exports” (transfer of controlled technology/technical data to foreign nationals within the UK) and intangible exports (such as technical assistance). This serves to emphasise the human element of compliance. 

For example, if controlled tech is shared with non-UK staff, visitors and contractors, this is considered an export (under US regulations) to that person’s home nation – and an export licence might be needed, even though the transfer happens within the UK. Notably, sharing can happen in a variety of ways, such as via emails, access to servers, visibility of stock, meetings, site visits, and so on.

HR best practice for export control compliance

HR plays a critical role in managing “deemed export” risks through:

• Nationality and residency tracking: collecting and maintaining accurate information on employees’ nationality, residency, and location, as these can impact access to controlled technology
• Access controls: working with IT and management to restrict access to controlled technology for authorised personnel
• Onboarding and offboarding: implementing processes to address export control implications during new hires and employee departures (e.g., revoking access to sensitive information)
• Internal compliance programmes: HR significantly contributes to developing and implementing a company’s Export Management and Compliance Programme (EMCP), including:

Defining clear policies and procedures including:

• Balancing data protection, anti-discrimination, and export control regulations
• Establishing reporting mechanisms for suspected violations
• Ensuring appropriate record-keeping for all export-related activities
• Due diligence for employees and third parties: HR, often with legal and compliance teams, can assist in screening employees, contractors, and other third parties involved in export activities against denied party lists
• Culture of compliance: HR is instrumental in fostering a strong compliance culture by communicating the importance of export controls, promoting ethical practices, and integrating compliance into daily operations
• Responding to non-compliance: If a violation occurs, HR will be involved in disciplinary actions – from retraining to termination – and cooperating with authorities

How a clearBorder and HR partnership delivers stronger compliance

More than a strict legal requirement, export control compliance is – in many ways – a people issue. clearBorder helps turn complex regulations into clear, workable processes by assisting HR teams understand, manage, and embed best practice across their organisation.

From building bespoke training programmes to advising on nuanced areas like “deemed exports” and dual-nationality challenges, we support HR leaders in becoming confident custodians of compliance. The result? A workforce that is informed, protected, and fully aligned with international trade obligations.

Specifically for “deemed exports”, clearBorder can advise on this somewhat-confusing concept,which directly informs HR’s need to:

• Understand which roles involve access to controlled technology

• Collect and manage nationality/residency information appropriately and legally

• Develop internal policies for granting access to sensitive information

We also provide bespoke training for HR and other staff, to equip them with the knowledge to:

• Recognise export control implications during the hiring process

• Understand the legal boundaries when asking for nationality information

• Implement effective employee screening procedures for denied parties

• Ensure new hires in relevant roles receive appropriate export control briefings

Beyond this, we can assist in developing internal compliance programmes and auditing a company’s Export Management and Compliance Programme (EMCP). This programme will include policies and procedures that HR must implement and enforce, such as:

• Employee awareness and training programmes

• Documentation and record-keeping requirements related to “deemed exports” and personnel access

• Reporting mechanisms for potential violations

Through deep, expert analysis of a company’s export control risks, clearBorder also helps identify areas where HR policies and procedures need to be strengthened to prevent inadvertent breaches – and continue trading across borders, confidently and capably.

References

[1] The Office of Foreign Assets Control (OAFC) enforces and publicises civil fines and penalties for export and international trade compliance violations. The value of fines implemented in the first quarter of 2023 indicated that this was already a record year of monetary penalties totalling more than $33M. [https://www.descartes.com/resources/blog/cost-of-export-compliance-errors-highlights-the-need-for-robust-denied-party-screening ]

Financial and criminal penalties for US export control violations have been adjusted upwards for 2025 to account for inflation. Wilful violations of the Export Administration Regulations (EAR) can result in significant civil penalties, which for 2025 can be up to $374,474 per violation or twice the value of the transaction. Criminal penalties can include substantial fines and lengthy prison sentences. [https://www.cmtradelaw.com/2025/01/u-s-export-controls-and-sanctions-regulatory-agencies-increase-civil-monetary-penalties-for-violations/ & https://www.bis.doc.gov/index.php/enforcement/oee/penalties]