Comply with the BIS 50% / Affiliates Rule

The U.S. Department of Commerce Bureau of Industry and Security (BIS) 50% Rule (the Affiliates Rule) subjects subsidiaries that are 50% or more owned by parties on the Entity List to the same restrictions as their parent companies.

Master Export Controls with Kharon: Precision and Compliance

Kharon’s export controls solutions equip organizations with the data and tools needed to navigate evolving export controls regulations, including the U.S. Department of Commerce Bureau of Industry and Security (BIS) 50% Rule (the Affiliates Rule). Kharon ClearView provides organizations with comprehensive insight into entities subject to export restrictions, including subsidiaries that are majority-owned by listed parties, enabling them to identify risks, mitigate compliance exposure, and demonstrate credible controls.

Powered by advanced technology, artificial intelligence, and a team of world-class multilingual experts and data scientists, Kharon ClearView is the only platform capable of credibly and comprehensively helping organizations uncover hard-to-detect regulatory risks and mitigate enforcement and reputational exposure.

Mapping of majority-owned subsidiaries: Identify entities owned 50% or more by parties on the BIS Entity List through enriched ownership data from all publicly available sources spanning jurisdictions around the globe and complex corporate structures.
Minority ownership and influence risk: Kharon also assesses entities with minority ownership or influence by parties on the BIS Entity List or military end users, recognizing that risk can stem from ownership below the 50% threshold, especially in joint ventures or sectors of national security concern.
Beyond the BIS 50% Rule: Kharon also provides insight into diversion pathways, military end-users and their subsidiaries, and outbound investment risks – all areas of high priority U.S. national security concern. Kharon’s intelligence enables proactive compliance by identifying entities that may pose a risk, even if they are not explicitly listed.

+Identify subsidiaries and entities meeting the 50% threshold requirement

+Uncover minority owned or influenced entities

+Integrate intelligence and data into existing workflows

Expand Screening to Meet Evolving BIS 50% Rule Requirements

Impact on supply chains

Customers, resellers, and logistics partners may suddenly fall within the scope of U.S. export controls, even if they are not named individually.

As a result, export, sales, and logistics teams need to work closely with compliance and legal functions to avoid inadvertent violations, and trade flows may shift in response to these newly restricted relationships.

Proactive compliance

U.S. export control policy — particularly efforts to limit China’s access to advanced technology — is poised to impact a wide range of sectors, including technology, aerospace, defense, and advanced manufacturing. Organizations that do not adapt to these evolving controls may face legal exposure, financial penalties, and reputational harm.

Unlock the full picture with Kharon

Powered by cutting-edge technology and a team of multilingual subject matter experts and data scientists, Kharon is uniquely positioned to help organizations identify and mitigate regulatory risks, as well as reduce enforcement and reputational exposure. Kharon ClearView and GraphCast are the only solutions capable of building and maintaining credible, defensible, and sustainable controls to address the BIS 50% Rule and export control regulations, ensuring organizations remain compliant and secure.

Stay ahead of regulatory changes and safeguard your organization with Kharon.

Data

Sanctioned Securities

Outbound Investment

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