UPDATE: On October 30, U.S. President Donald Trump and PRC President Xi Jinping agreed to a one-year trade truce that, as part of its terms, suspends export controls on technology, rare earth minerals, and semiconductors, and reduces the U.S. fentanyl-related tariff on China by 10%.
The deal’s temporary pause on the application of the BIS 50% Rule on China shows that geopolitical risk and regulatory policy are in a state of constant flux. The rule had just officially gone into effect on September 29. How quickly the regulatory environment has evolved underscores the importance of up-to-date, foundational data on corporate ownership structures, as is highlighted in this webinar. Data is the only way organizations can maintain continuous compliance and operational resilience, given the unpredictable nature of these regulatory shifts. Read more here.
In April, nominee for BIS Assistant Secretary of Export Administration Landon Heid expressed interest in implementing a Majority Ownership rule for the BIS Entity List and Military End User (MEU) List, and industry experts now anticipate the change will occur regardless of Heid’s confirmation. Such a rule would mirror the Office of Foreign Assets Control’s (OFAC) 50 Percent Rule in an effort to close a “subsidiary loophole” suspected of contributing to export control evasion. Because traditional screening lists do not include the subsidiaries of listed entities on the BIS Entity list, this could create potential compliance vulnerabilities for companies should the rule go into effect.
Sayari, in anticipation of this seismic regulatory shift, announced the release of its BIS50 Signal Screening Solution, an extension of Sayari’s existing robust screening capabilities, that empowers organizations to prepare for this rule by providing shareholder relationship data with precise ownership percentages. This module delivers the immediate, actionable intelligence companies need to strengthen compliance, reduce risk, and protect their business — particularly in the face of swift regulatory changes.
Watch this webinar* aired on Tuesday, July 1st at 11am ET** to hear from Akin’s Kevin Wolf, Matt Borman, and Eileen Albanese, and Sayari’s Harry Hayllar, on how the proposed export control expansion is expected to impact industry. This session will include:
- An overview of the regulatory context and the challenges it poses to compliance teams
- A discussion of the legal and practical implications of a BIS Majority Ownership rule and how exporters should prepare
- A look at how organizations can protect against subsidiary risk with Sayari’s BIS50 Signal Screening Solution
Watch the webinar to learn more and start helping your organization confidently navigate today’s complex regulatory environment.
*Attendees of this webinar are eligible for one (1) CE credit for CCS/MCS, CES/MES, LCB credit type(s). If you would like credit, please attend the full webinar and email us afterward. We will verify your attendance and provide you with a code.
**Due to scheduling conflicts, this session was pre-recorded on Friday, June 27th. Sayari and the presenters involved will make every effort to ensure that it’s up-to-date at the time of its broadcast.
