The Hidden 50%: Are You Screening for Ownership Risk?

Sanctioned and restricted parties increasingly hide behind subsidiaries, affiliates, and multi‑layer control structures. Under the Office of Foreign Assets Control (OFAC) 50 Percent Rule and the Bureau of Industry and Security (BIS) 50% Affiliates Rule, entities that are 50% or more owned—directly or indirectly—by restricted parties are treated as restricted, even if they are not listed. But because government lists don’t publish ownership details, traditional name-based screening leaves a significant risk gap.

Descartes Sanctioned Party Ownership Screening consolidates verified ownership intelligence from multiple authoritative sources into one industry-leading denied party screening platform. With real-time updates covering tens of thousands of majority-owned entities across hundreds of jurisdictions, Descartes helps organizations achieve:

• Global coverage across hundreds of jurisdictions
• Real-time ownership updates
• Automated risk detection
• Accurate majority-ownership identification
• Built-in audit-ready recordkeeping

As regulatory expectations expand globally, deeper due diligence is no longer optional.