Kharon’s export controls solutions equip organizations with the data and tools needed to navigate evolving export controls regulations, including the potential U.S. Department of Commerce Bureau of Industry and Security (BIS) 50% Rule. The Kharon platform 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 is the only platform capable of credibly and comprehensively helping organizations uncover hard-to-detect regulatory risks and mitigate enforcement and reputational exposure.
HOW KHARON SUPPORTS COMPLIANCE WITH THE POSSIBLE BIS 50% RULE
+ Mapping of majority-owned subsidiaries: Identify entities owned 50% or more by parties on the BIS Entity List, utilizing enriched ownership data from all publicly available sources spanning jurisdictions worldwide 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, recognizing that risk can stem from ownership below the 50% threshold, especially in joint ventures or sectors of national security concern.
+ Beyond the 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.
UNDERSTANDING THE PROPOSED BIS 50% RULE AND 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 has considered 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 can create 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.