On November 6, 2023, the Bureau of Industry and Security (BIS) from the Department of Commerce and FinCEN issued a Joint Notice on Export Control Evasion, introducing a new key term, “FIN-2023-GLOBALEXPORT,” to the Suspicious Activity Report (SAR). This term is to be used by financial institutions when reporting on possible efforts by individuals or entities seeking to evade U.S. export controls.[1]
The BIS and FinCEN issued this joint notice to foster transparency and cooperation amid concerns of export control evasion. The term “FIN-2023-GLOBALEXPORT” is envisioned as an instrument for enhancing communication and collaboration between financial institutions and these regulatory bodies.
The term, added to the Suspicious Activity Report (SAR), is targeted at finance professionals who, in performing their regular duties, might encounter questionable conduct relating to U.S. export controls. By equipping these professionals with a new tool for their reporting toolkit, authorities aim to strengthen their capacity to prevent, detect, and report possible evasion attempts.
The use of this new terminology in a SAR is intended to make it easier for the BIS and FinCEN to track and investigate potential U.S. export control violations. The integration of this term into SARs forms part of broader efforts to promote compliance with export control regulations while preventing misuse of the country’s financial infrastructure.
This development could potentially have significant implications for corporations and law firms dealing with U.S. export controls. It underlines the importance of comprehensive training for financial professionals in understanding and detecting potential evasion attempts, as well as proper compliance with reporting requirements.
As both corporations and legal professionals adapt to these changes, understanding and implementing the new regulatory term will be vital. In the face of these changes, it’s more important than ever for legal professionals to stay informed and up-to-date, ensuring not only compliance but also protection for their organizations in an evolving regulatory landscape.