BIS 50 percent rule
Automated ownership aggregation for entity-based export controls. Currently postponed until November 2026.
Read detailed blog post about the 50% ruleWhat the rule requires
Rule Status: Postponed
The BIS 50% Affiliates Rule enforcement is currently paused until November 10, 2026. SecurePoint USA will implement full enforcement once the rule resumes. Until then, ownership screening continues with escalation workflows.
Ownership aggregation across sanctioned or restricted entities
The BIS 50 percent rule requires aggregating direct and indirect ownership interests across multiple entities. If a sanctioned or restricted entity owns 50 percent or more (directly or indirectly) of another entity, that entity is also subject to the same restrictions.
Indirect ownership triggering restrictions
Ownership chains must be traced through multiple levels. A company may be restricted even if no direct ownership exists, if the aggregate indirect ownership meets the 50 percent threshold. This includes ownership through subsidiaries, affiliates, and intermediate holding companies.
Ongoing monitoring
Ownership structures change over time. Continuous monitoring is required to detect when ownership percentages cross the 50 percent threshold, triggering new restrictions or lifting existing ones.
How SecurePoint implements it
Ownership aggregation in screening
Automated ownership chain analysis during sanctions screening. SecurePoint aggregates direct and indirect ownership percentages to determine if the 50 percent threshold is met. Real-time calculations based on current BIS entity list data.
Affiliate detection
Automatic identification of affiliated entities and subsidiaries based on ownership relationships. Multi-level ownership chains are traced to identify all entities subject to restrictions under the 50 percent rule.
Escalation by default during postponement period
While the rule is postponed, when BIS affiliate hits are detected, cases automatically escalate to senior reviewers. Configurable escalation rules ensure compliance teams review high-risk ownership relationships before making access decisions. Full automated enforcement will resume in November 2026.
Full audit visibility
Every ownership aggregation calculation, affiliate detection, and escalation decision is logged in immutable audit trails. Complete transparency for export control reviews and BIS compliance audits.
Where it is used
Vendor checks
Screen suppliers, contractors, and business partners against BIS entity lists with ownership aggregation. Identify restricted entities even when direct ownership is not apparent.
Foreign visitors
Check foreign nationals and their associated companies against BIS restrictions. Ownership aggregation ensures comprehensive coverage for export control compliance.
Pre-contract due diligence
Screen potential partners and contractors before entering agreements. Ownership aggregation helps identify restricted entities early in the procurement process.
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Learn more about the 50% rule and its implementation in our detailed blog post.