The U.S. government has announced a significant expansion to the 50% ownership rule under U.S. sanctions regulations. Previously, the rule applied to entities owned 50% or more, directly or indirectly, by one or more persons or entities on the U.S. sanctions list. Under the updated regulation, the rule now extends beyond direct ownership to include aggregated ownership stakes across multiple sanctioned parties and expanded attribution through indirect or tiered ownership structures.
This means, that companies must now identify and screen not only direct shareholders but also any entities that may be controlled through complex ownership chains or joint holdings by sanctioned individuals or organizations.
To support compliance, U.S. government has provided a 60-days grace period, allowing companies until November 2025 to update their internal screening processes and technology systems.
MIC’s Denied Party Screening (DPS) solution is fully equipped to address these enhanced requirements. Our model integrates beneficial ownership data, evaluates indirect relationships, and automatically flags entities that meet the expanded 50% ownership criteria, ensuring full compliance with the new BIS framework.
For more information or to discuss how MIC’s software solutions can support your compliance efforts, please contact our team at MIC US ([email protected]) or MIC Europe ([email protected]). We’ll be happy to provide detailed guidance and implementation support tailored to your needs.
