The BIS 50% Affiliates Rule Suspension Could be Lifted Soon.
Get Greater Visibility into Entities with Potential Ties to
Restricted Parties—Before Regulatory Requirements Change.
The BIS 50% Affiliates Rule is currently suspended through November 9, 2026. Under the existing regulation, the rule is scheduled to return November 10. Get ready for what comes next.
Act now. Delayed compliance is the costliest option.
You Should Know More About Who
You’re Doing Business With
The BIS 50 pause creates a difficult choice for compliance teams: either wait for absolute certainty or prepare for what may come next.
Some organizations are already choosing to take a more proactive approach by screening against Descartes BIS 50% Affiliates data now. Doing so can help uncover ownership relationships that may warrant closer review while giving compliance teams more time to understand their potential risk exposure.
You may not know when BIS will actually begin enforcement. But you should know more about who you’re doing business with today.
Be Prepared for What Comes Next
The BIS 50% Affiliates Rule aims to close loopholes that have allowed restricted entities to circumvent controls through majority-owned subsidiaries. To be prepared and avoid potential violations, consider the following:
- Expanded Compliance Scope: Thousands of subsidiaries in nearly 100 jurisdictions may now fall under export-control regulations, significantly increasing the number of entities requiring scrutiny.
- Complex Ownership Structures: The rule applies to indirect ownership through multiple layers, necessitating deeper analysis of corporate hierarchies.
- Enhanced Due Diligence Requirements: Traditional screening methods may be insufficient. Organizations will need to implement more robust systems to trace ownership and control relationships.
- Increased Enforcement Risks: Failure to comply with the new rule could result in significant penalties and reputational damage.
Descartes offers advanced screening solutions designed to navigate the complexities introduced by the BIS 50% Affiliates Rule:
- Comprehensive Ownership Screening: Identify and assess entities with complex ownership structures that may now be subject to restrictions.
- Real-Time List Updates: Stay informed with the latest changes to the Entity, MEU, and SDN lists, and related regulations.
- Automated Compliance Workflows: Integrate compliance checks seamlessly into your existing processes to ensure efficiency and accuracy.
- Expanded Export Licensing: Manage the full spectrum of export licenses and authorizations all within one powerful export license management system.
By leveraging Descartes, your organization can proactively adapt to regulatory changes, mitigate risks, and maintain uninterrupted operations.
- Comprehensive Ownership Screening
- Real-Time List Updates
- Automated Compliance Workflows