Expansion of End-User Controls to Cover Affiliates of Certain Listed Entities
Summary
The federal government is expanding rules that control what certain companies can do with sensitive technology and products, now making those rules apply not just to the main companies but also to their affiliated businesses. This aims to prevent companies from getting around export controls by using related companies to access restricted items.
Key Points
- 1The rule extends export and transaction controls to affiliate companies of businesses already on the government's restricted entities list
- 2Affected companies in finance, technology, and other sectors cannot use subsidiary or partner companies to bypass existing restrictions on sensitive materials and technology
- 3The regulation is intended to close loopholes where restricted companies could conduct prohibited business through related organizations
- 4Companies have until October 30, 2025 to submit public comments about how this rule might affect their operations
- 5Violations could result in significant penalties, so businesses need to update their compliance procedures to cover all affiliated entities
Key Dates
September 30, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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