Good morning. The Commerce Department’s Matthew Axelrod is emphasizing what his department expects from companies uncovering potential export-control violations: Holding back could make it worse.

Mr. Axelrod, an assistant secretary for export enforcement at the department’s Bureau of Industry and Security, said at the WSJ Risk & Compliance Forum on Tuesday that if a company uncovers potential export-control violations and decides not to tell the agency, or if a company decides not to investigate possible misconduct, the regulator could consider it an “aggravating factor” in the resolution process.

Companies typically receive penalty reductions if they voluntarily self-report to the BIS.

Priorities at the DOJ: Companies with strong compliance programs are more likely to detect fraud more easily, self-report potential violations and quickly remediate problems, said Glenn Leon, the chief of the Justice Department’s criminal fraud section, at Tuesday’s Forum. To help compliance chiefs in general build better processes, the fraud section is publishing more details about the cases it handles, including corporate pleadings, he said. “We’re being more transparent every day with what our expectations are,” he said.

He also reassured the public that the work of bringing cases to trial is going smoothly, despite criticism from some quarters that prosecutions can sometimes take months or years to play out. “These are big, complex cases,” he added. “Nothing’s broken. Nothing is wrong.”

FTX founder Sam Bankman-Fried seeks dismissal of criminal charges.

FTX founder Sam Bankman-Fried asked a New York federal judge to dismiss most of the criminal case against him, saying the Justice Department brought flawed charges in a rush to indict him after the collapse of the crypto exchange.

Lawyers for Mr. Bankman-Fried, in a series of motions Monday night, requested that many of the counts against their client be tossed out, arguing that some charges violated the terms of his extradition from the Bahamas while others didn’t meet the legal requirements of underlying criminal statutes.

• Goldman Sachs has agreed to pay $215 million to settle a class-action lawsuit with a large group of former and current female employees.

Managing in a downturn: Compliance departments aren’t immune from economic pressure, said Liz Atlee, chief ethics and compliance officer at real estate company CBRE. Her department is using video conferencing tools such as Zoom to conduct some investigations, and leaning on technology in some of the more mundane testing and monitoring processes. “While that’s an initial investment, it is, in the long run, a cost-saving measure,” she said.

Sidney Majalya, the chief risk officer of cryptocurrency platform Binance.US, added that when trying to make the case for preserving compliance budgets, he will show the board a chart of regulatory fines that have been levied against other companies. The presentations are to “make sure that people understand that this pennywise decision may be foolish in the end,” he said.

Fragmented privacy policies: Seven states now have data-privacy laws and 16 others are debating active bills, with no two the same. In that environment, a company seeking to launch new products that use data must navigate a fragmented privacy landscape, said Caroline Louveaux, chief privacy officer at Mastercard.

Customizing a product, and its accompanying privacy disclosures, to each market not only confuses potential customers but “may be a very costly exercise” for the company, Ms. Louveaux said, while adopting privacy policies that comply with the strictest current law could limit the market for the new product. 

—With reporting from Kim Nash, Mengqi Sun and Richard Vanderford

Biden, GOP lawmakers not budging as debt-ceiling meeting convenes.

President Biden and House Speaker Kevin McCarthy remained at loggerheads after a meeting at the White House on Tuesday, making little progress in averting the first-ever default by the federal government but setting plans for a new round of talks.

House Republicans have demanded deep spending cuts in exchange for raising the debt ceiling. Mr. Biden and Democrats in Congress maintain that the federal borrowing limit should be raised without preconditions and have called the GOP stance irresponsible, as a June deadline looms. Neither side has presented a path forward that could win enough support to pass both chambers of Congress.

• Chinese export growth slowed in April as global trade cooled, underlining the importance of domestic spending as the main engine for the world’s second-largest economy after three years of strict Covid-19 controls.
   
• Canada on Monday expelled a Chinese diplomat after cabinet members learned that he allegedly ordered authorities in Hong Kong to monitor and possibly intimidate the relatives of a Conservative lawmaker critical of Beijing’s treatment of the Uyghur Muslim minority.
   
• The arrest of former Pakistani Prime Minister Imran Khan on corruption charges sparked demonstrations Tuesday, in an escalation of the confrontation between the popular opposition politician and the country’s civilian and military leaders.
   
• The eastern U.S. had a record warm start to the year, according to a new report from the National Oceanic and Atmospheric Administration.

FBI disables malware Russia allegedly used to steal documents from NATO allies.

U.S. authorities said they disabled a piece of malware Russia’s intelligence agency has allegedly used for two decades to steal documents from NATO-allied governments and others, in an operation that highlights the FBI’s increasing efforts to go beyond arresting hackers and find new ways to disrupt cyberattacks.

The operation effectively hobbled one of Russia’s most well-known and oldest cyber espionage groups, officials and security experts said, a vaunted hacking team that has been previously linked to devastating thefts of U.S. secrets.

• A federal jury found Donald Trump liable to E. Jean Carroll for battery and defamation and ordered him to pay $5 million in damages, after a civil trial in which the columnist alleged the former president raped her in a Manhattan department store nearly 30 years ago.
   
• Senate Democrats are ramping up their scrutiny of billionaire Harlan Crow’s relationship with Justice Clarence Thomas, after the Republican real-estate magnate rebuffed a request for details on his gifts to and business dealings with the Supreme Court member.
   
• Boeing struck a deal to sell as much as $40 billion in 737 MAX jets to Ryanair, a victory for the plane maker as it works to re-energize its business and patch up relations with the European discount airline.
   
• The rise of artificial intelligence is taking the tech world by storm. The technology is also making waves on Wall Street.
   
• UBS Group said it would integrate Credit Suisse Group with a freshly composed executive team that includes Credit Suisse’s chief executive and a new chief financial officer.

Follow us on Twitter at @WSJRisk. Follow Risk & Compliance editor David Smagalla @DSmagalla_DJ and reporters Mengqi Sun @_MengqiSun, Dylan Tokar @dgtokar and Richard Vanderford @VanderfordRich.

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