Proliferation networks use commercial and business practices to obtain materials, technology, and knowledge to further nuclear, chemical, biological, and radiological programs. Nuclear proliferation networks seek to circumvent national and international restrictions against procuring the technologies necessary for developing nuclear weapons programs. These networks exploit weak export control systems, procure dual-use goods with both nuclear and common industrial uses, and employ deceptive tactics such as front companies and falsified documents, according to the Department of Energy. The A.Q. Khan network, established by the former head of Pakistan’s nuclear weapons program, supplied Pakistan with nuclear technology for its national weapons program. However, it became a network that provided nuclear technology to any state for profit. The development of this network illustrates how determined proliferators can effectively circumvent existing export controls to acquire sensitive nuclear-related and dual-use technologies. According to Energy, the A.Q. Khan case illustrates the scope and magnitude of the threat of nuclear networks— how both weak export control systems and system gaps allowed a network to procure sensitive materials from states worldwide. The network also highlighted the role that companies in several countries, such as Malaysia, played in unwittingly facilitating sales as suppliers of technology or points of transit. According to open-source reporting, countries where A.Q. Khan proliferation network activities occurred included Germany, Japan, Malaysia, the Netherlands, Pakistan, Republic of Korea, Singapore, South Africa, Turkey, United Arab Emirates (UAE), and United Kingdom. The multilateral nonproliferation regime, which, among other purposes, attempts to counter nuclear networks, consists of the Non-Proliferation Treaty (NPT), International Atomic Energy Agency (IAEA) inspection regime, United Nations (UN) Security Council Resolution 1540, Nuclear Suppliers Group (NSG), and the Proliferation Security Initiative (PSI). The regime also includes multilateral and national assistance programs and national export controls and laws. Entered into force on March 5, 1970, NPT obligates nuclear weapon states not to transfer nuclear weapons or other nuclear explosive devices to any recipient, and not to assist, encourage, or induce any nonnuclear weapon state to manufacture or otherwise acquire nuclear weapons or other nuclear explosive devices. Under the treaty, each nonnuclear weapon state pledges not to receive, manufacture, or otherwise acquire nuclear weapons or other nuclear explosive devices, and not to seek or receive assistance in their manufacture. NPT also obliges each nonnuclear weapon state to accept comprehensive international safeguards, including inspection, through agreements negotiated with IAEA. The intent of these safeguards is to deter and detect the diversion of nuclear material for nuclear explosive purposes. Relevant U.S. assistance programs on export and border controls include EXBS and INECP. State’s EXBS program assists foreign governments in strengthening their export controls by improving their legal and regulatory frameworks, licensing processes, border control and other enforcement capabilities, outreach to industry, and interagency coordination. The mission of Energy’s INECP is to prevent the proliferation of WMD and WMD-related material, equipment, and technology by helping other countries develop effective national export control systems. Total EXBS funding for fiscal years 2003 through 2006 was about $175 million and for INECP was about $30 million. Since the terrorist attacks of September 11, 2001, and the exposure of the A.Q. Khan nuclear proliferation network, the President and U.S. government agencies involved in national enforcement activities have emphasized the importance of preventing WMD proliferation, including nuclear proliferation. On a national level, the United States endeavors to counter nuclear proliferation by enforcing laws that control the export of materials—including dual-use items—that could be used to make a nuclear weapon and by applying criminal or administrative penalties to proliferators. The Departments of Commerce, Homeland Security, Justice, State, and Treasury have responsibilities for enforcing various laws that relate to nuclear proliferation. The U.S. government’s control over the export of defense nuclear and dual-use items is primarily divided between two departments—State and Commerce, respectively. Support for enforcement activities comes primarily from Commerce, through its Bureau of Industry and Security’s Office of Export Enforcement; DHS, through its Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE); and Justice, through the Federal Bureau of Investigation (FBI) and the United States Attorneys Office. Export enforcement involves inspecting items to be shipped, investigating potential violations of export control laws, and punishing export control violators. The United States has initiated a range of multilateral efforts and proposals to counter nuclear proliferation networks. Although multilateral organizations have adopted some U.S. proposals that would help address illicit nuclear proliferation networks, they have not adopted others. First, the United States negotiated the passage of UN Security Council Resolution 1540 that obligated all member states to adopt laws and regulations prohibiting the proliferation of WMD. Second, the U.S. government led NSG to conduct several activities aimed at combating proliferation networks, including development of watch lists; however, two U.S. proposals to NSG have not been adopted. Third, with U.S. support, IAEA has taken several actions to address proliferation networks, such as establishing a unit intended to analyze covert nuclear trade activities. However, IAEA has not yet adopted a recommendation drafted in June 2005 that calls on member states to provide IAEA with information on their exports to improve the agency’s ability to detect possible clandestine nuclear activities. Finally, the U.S. government has led efforts to establish the Proliferation Security Initiative (PSI). The United States negotiated the passage of a UN Security Council resolution that obligated all member states to adopt laws and regulations prohibiting the proliferation of WMD. The UN Security Council adopted Resolution 1540 in April 2004, obligating all member states to adopt laws prohibiting proliferation of WMD as well as to maintain and enforce adequate export controls. Under UN Security Council Resolution 1540, all states have three primary obligations relating to nuclear, chemical, and biological weapons, and their delivery systems. They are to (1) refrain from providing support to nonstate actors seeking such items; (2) prohibit nonstate actors from acquiring, using, and attempting to acquire and use such items; and prohibiting nonstate actors from participating in, assisting, or financing such activities; and (3) put in place and enforce effective measures to control these items and related material to prevent their proliferation. Member states have begun implementing its provisions by submitting required reports on their export control laws to a committee designated the 1540 committee. The committee also has been tasked with identifying the assistance needs of countries and coordinating their requests for assistance with offers from other countries. The U.S. government led NSG in several activities to combat proliferation networks, including the development of watch lists. However, NSG has not adopted two U.S. proposals that would commit members to refrain from exporting certain technologies to states that do not already have the capability to use them and to countries that have not agreed to allow IAEA additional rights to inspect any facilities suspected of covert nuclear activities. NSG, established in 1975, is a multilateral export control regime with 45 participating governments. The purpose of NSG is to prevent the proliferation of nuclear weapons through export controls of nuclear and nuclear-related material, equipment, and technology, without hindering international cooperation on peaceful uses of nuclear energy. NSG periodically updates and strengthens its guidelines on how member states should control and license sensitive technologies and maintain lists of the technologies to be controlled. However, NSG, like other multilateral export control regimes, is a consensus-based organization and depends on the like-mindedness or cohesion of its members to be effective. NSG has undertaken several activities to help shut down proliferation networks. For example, in May 2004, NSG noted its concern over the discovery of a covert international proliferation trafficking network, through which sensitive nuclear-related equipment had found its way to Libya. To address this concern, the United States developed national procurement watch lists for all supplier states as a means to help block further procurement of nuclear-relevant items that are not formally controlled by placement on export control lists. To slow down North Korea’s and Iran’s work on their nuclear programs, the watch lists focus on items of interest to those countries, according to Energy. The lists include items that could be used to enrich uranium, reprocess spent nuclear reactor fuel, and fabricate fuel for nuclear reactors. Both NSG members and nonmembers use the lists. Through U.S. leadership, NSG also has conducted outreach to non-NSG members, creating awareness of issues related to the supply of sensitive technology, and pressing for adherence to NSG guidelines. For example, NSG worked with existing international organizations, such as IAEA and the UN Security Council Resolution 1540 committee, and with nonmembers to help close gaps in the nonproliferation regime that proliferation networks seek to exploit. NSG has not adopted two U.S. proposals announced by the President in 2004. The first proposal would commit members to not export certain nuclear technology to states that do not have the capability to develop material for nuclear fuel or nuclear weapons. Also, NSG has not adopted a second proposal under which NSG members would refrain from providing nuclear-related technologies to countries that have not agreed to allow IAEA additional rights to inspect any facilities suspected of covert nuclear activities. The President announced that NSG members should refuse to sell enrichment and reprocessing equipment and technologies to any state that does not already possess full-scale, functioning enrichment and reprocessing plants. This step, according to the President, would prevent new states from developing the means to produce fissile material for nuclear bombs. State and Energy officials stated that the first proposal has not yet been adopted within NSG because it favors states that already have enrichment and reprocessing capability over those that do not.