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

A POSSIBLE BIS 50% RULE AND THE EXPORT CONTROLS LANDSCAPE 

The U.S. government has increasingly focused on preventing the transfer of strategic goods, software, services, and technology to countries identified as “strategic rivals and their proxies.” Restricted companies have often continued to circumvent existing export restrictions through complex corporate structures and emergent subsidiaries not covered under U.S. export controls. This regulatory blind spot has raised national security concerns, prompting efforts to expand enforcement and close loopholes.

Reports indicate that the Trump administration is considering a BIS 50% Rule, which would expand licensing requirements to apply not only to named entities on the BIS Entity List, but also to any entity that is owned 50% or more, directly or indirectly, by one or more listed parties. 
This measure would mark a significant expansion to the scope of regulatory requirements, introducing the need for enhanced intelligence to identify exposure not only to BIS-listed entities themselves, but also to their majority-owned subsidiaries.

HOW KHARON SUPPORTS COMPLIANCE WITH A POTENTIAL BIS 50% RULE

Kharon’s export controls solutions provide high-precision data and insights that go beyond government lists, helping organizations detect risk exposure and build credible, defensible, and sustainable controls to address a possible BIS 50% Rule.

Powered by advanced technology and a team of world-class multilingual experts and data scientists, Kharon 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 significant minority ownership or influence by parties on the BIS Entity List, recognizing that strategic control can exist below the 50% threshold, especially in joint ventures or sectors of national security concern.

+ Beyond a potential 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 not explicitly listed.

Kharon’s export controls solutions, including data on the units and majority-owned subsidiaries of parties on the Entity List, simplify compliance with evolving regulations by enabling organizations to screen for ownership, diversion risk, and end-use exposure within existing compliance workflows, helping uncover and mitigate regulatory and reputational risk that may otherwise remain hidden within complex global networks.