FCC orders Luminys to justify equipment authorizations amid national security concerns
The Federal Communications Commission (FCC) has issued an order requiring Luminys Systems Corp. to explain why its equipment authorizations should not be revoked, citing potential false statements in its certification applications.
The order, adopted and released on February 13, raises concerns over whether Luminys’s security products violate federal regulations designed to protect national security.
Regulatory Scrutiny and the Dahua Connection
The development comes in the wake of Luminys’s acquisition of Dahua Technology’s North American operations in January 2024. Dahua, a China-based manufacturer of surveillance and security equipment, has long faced scrutiny from U.S. regulators over national security concerns. The sale of its North American division to Luminys, a subsidiary of Taiwan-based Foxlink, was viewed as an effort to maintain a foothold in the U.S. market amid tightening restrictions on Chinese technology companies.
In a letter to dealers and distributors obtained by SecurityInfoWatch.com at the time of the acquisition, Lin Kun-Huang, director of Dahua Technology USA, said North America had long been an important market but Dahua decided to make a complete ownership change to “ensure an unwavering commitment to our customers and secure a foundation for long-term growth in the North American market.”
Despite the ownership transfer, Luminys has continued to offer products originally developed and manufactured by Dahua, which remains on the FCC’s Covered List of prohibited entities. The FCC’s latest action stems from the Secure and Trusted Communications Networks Act of 2019, which restricts companies from deploying equipment that poses potential security threats. Under these rules, any manufacturer seeking equipment authorization must certify that its products do not include components from restricted entities.
The FCC alleges that Luminys may have falsely certified compliance with these regulations in its applications, prompting the agency to demand justification.
Luminys’s Product Expansion and AI Integration
Even as Luminys faces regulatory scrutiny, the company has been actively expanding its product portfolio in North America. In October 2024, the company introduced several new security solutions, including the LumiGuardian solar-powered camera trailer, the LumiCenter video management system (VMS), and a line of cloud-managed gigabit switches. The products were positioned as innovative solutions designed to enhance end-to-end security for businesses and government agencies.
Luminys has also leveraged advancements in artificial intelligence (AI) and computing power through its parent company, Foxlink. The company has partnered with Ubilink, an AI supercomputing center, to integrate machine learning capabilities into its security and Internet of Things (IoT) platforms. These developments were intended to boost Luminys’s competitive edge in the North American security market, particularly in AI-driven surveillance.
Potential Implications for Security Integrators and End Users
The FCC’s order puts installing security contractors and end-user organizations in a difficult position. If Luminys is found to have falsely certified its compliance, its equipment authorizations could be revoked, making it illegal to sell, install or use its products in the U.S. market.
For installing security contractors, this serves as a critical reminder to verify the regulatory status of the equipment they source and install. Integrators who continue deploying unauthorized products may face legal and financial consequences, including the need to replace non-compliant equipment at their own expense. Contractors working with public-sector clients should be particularly vigilant, as federal, state, and local agencies are subject to strict procurement regulations regarding security technology.
For end-user organizations, including businesses, government agencies and critical infrastructure operators, the FCC’s scrutiny raises concerns about the integrity of security systems that may incorporate Luminys equipment. Organizations that rely on these products are advised to assess potential risks, particularly if they are using hardware originally developed by Dahua. Any security vulnerabilities linked to restricted technology could result in compliance violations, liability issues and increased exposure to cyber threats.
What’s Next for Luminys?
Luminys must respond to the FCC’s order with evidence supporting the validity of its equipment authorizations. If the company fails to provide satisfactory justification, the FCC may take action to revoke its existing authorizations, barring the sale or deployment of affected products in the U.S.
