Insider Routes Bypass AI Export Controls

Export bans can be evaded not only by shadow traders but by insiders and partners who use pass‑through firms, staged 'dummy' audits, and repackaging to hide high‑end AI hardware destinations. Criminal schemes can exploit compliance gaps (off‑site auditors, weak physical verification) to move sanctioned compute where policymakers don't intend it to go. — Policymakers and companies need to design export‑control regimes and compliance audits that defend against insider‑assisted supply‑chain deception, not just external smuggling.