FinCEN and BIS Announce New SAR Key Term and Red Flags for Global Export Control Evasion

FIN-2023-NTC2 November 6, 2023
FinCEN and the U.S. Department of Commerce’s Bureau of Industry and Security Announce New Reporting Key Term and Highlight Red Flags Relating to Global Evasion of U.S. Export Controls The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) have previously issued two joint alerts urging financial institutions to be vigilant against efforts by individuals or entities to evade Russia-related export controls administered by BIS.1 Today, building on the success of those prior alerts in generating suspicious activity reporting, FinCEN and BIS are issuing a new SAR key term to support financial institutions2 in reporting potential efforts to evade U.S. export controls beyond the Russia-related circumstances that were the focus of those prior two alerts. Financial institutions should continue to use the key term “FIN-2022- RUSSIABIS” when filing SARs related to potential Russia-related export control evasion. This Notice, which applies to export control evasion occurring in support of other nation-state adversaries and illicit actors globally, provides U.S. financial institutions with red flags to assist them in identifying transactions potentially tied to the illicit acquisition of items subject to the Export Administration Regulations (EAR),3 including, for example, advanced technologies that can be used in new or novel ways to enhance adversaries’ military capabilities or support mass surveillance programs that enable human rights abuses.

1. See FinCEN Alerts, “FinCEN and the U.S. Department of Commerce’s Bureau of Industry and Security Urge Increased
   Vigilance for Potential Russian and Belarusian Export Control Evasion Attempts” (June 28, 2022) (June 2022 Alert), and “Supplemental Alert: FinCEN and the U.S. Department of Commerce’s Bureau of Industry and Security Urge Continued Vigilance for Potential Russian Export Control Evasion Attempts” (May 19, 2023) (May 2023 Alert).
2. See 31 U.S.C. § 5312(a)(2); 31 C.F.R. § 1010.100(t).
3. The EAR control certain exports, reexports, transfers (in-country) and other activities. For more information, see 15
   C.F.R. parts 730–774.
   New Suspicious Activity Report
   (SAR) Key Term:
   FinCEN requests financial institutions reference this alert in SAR field 2 (Filing Institution Note to FinCEN) and the narrative by including the following key term:
   “FIN-2023-GLOBALEXPORT”.