In a joint notice, the Department of Commerce’s Bureau of Industry and Security (BIS) and Financial Crimes Enforcement Network (FinCEN) issued a significant update regarding export control evasion. This document, produced on the 6th of November 2023, introduced the new Suspicious Activity Report key term “FIN-2023-GLOBALEXPORT”. According to the notice, this term should be used by financial institutions when they observe potential efforts by individuals or entities seeking to bypass U.S. export controls. Interestingly, this key term does not apply to matters relating to Russia’s invasion of Ukraine.
This announcement is an essential read for both finance and legal professionals globally. It clarifies and amplifies the need for vigilance and diligent reporting from financial institutions. This move underpins the U.S. government’s enduring efforts to restrain any potential efforts by individuals or corporations to subvert the country’s export controls.
The two bodies, BIS and FinCEN, hold the primary responsibilities to prevent financial crime and to enforce U.S. commercial and export control regulations. This development not only enhances the mechanisms used to report suspicious activities but also strengthens the level of cooperation between these two significant agencies.
Organisations need to underpin their internal policies to adhere strictly to these newly issued directives. Those who fail to comply may face severe regulatory consequences, underlining the importance of the joint notice in both a legal and financial context. Financial institutions should be particularly vigilant, monitoring all transactions for signs of possible illicit behaviors and promptly reporting any suspect activity under the new FIN-2023-GLOBALEXPORT key term.
It’s paramount that all corporations reassess their compliance protocols in light of these developments, to ensure they are in line with the newly issued notice and to prevent their possible involvement in any activities violating U.S. export controls.