FinCEN and BIS Urge Increased Vigilance for Potential Russian and Belarusian Export Control Evasion Attempts

FIN-2022-Alert003 June 28, 2022
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 The Financial Crimes Enforcement Network (FinCEN) and the U.S. Department of Commerce’s Bureau of Industry and Security (BIS)1 are issuing a joint alert2 urging financial institutions3 to be vigilant against efforts by individuals or entities to evade BIS export controls implemented in connection with the Russian Federation’s (Russia) further invasion of Ukraine. This joint alert provides financial institutions with an overview of BIS’s current export restrictions; a list of commodities of concern for possible export control evasion; and select transactional and behavioral red flags to assist financial institutions in identifying suspicious transactions relating to possible export control evasion. This alert further reminds financial institutions of their Bank Secrecy Act (BSA) reporting obligations and details how suspected export control evasion activity may also be reported to BIS enforcement authorities.

1. BIS advances U.S. national security, foreign policy, and economic objectives by ensuring an effective export control
   and treaty compliance system, and by promoting continued U.S. leadership in strategic technologies. See generally, Bureau of Industry and Security | U.S. Department of Commerce.
2. For previous FinCEN alerts related to Russia’s invasion of Ukraine, see “FinCEN Advises Increased Vigilance for
   Potential Russian Sanctions Evasion Attempts,” (FinCEN Alert on Russian Sanctions Evasion) (March 7, 2022) and “FinCEN Alert on Real Estate, Luxury Goods, and Other High-Value Assets Involving Russian Elites, Oligarchs, and their Family Members,” (March 16, 2022). For further reference, see also FinCEN “Advisory on Kleptocracy and Foreign Public Corruption,” (April 14, 2022), which includes a discussion of Russian political corruption.
3. See 31 U.S.C. § 5312(a)(2); 31 CFR § 1010.100(t).
4. Information on the numerous actions taken by BIS in response to Russia’s invasion of Ukraine is available here:
   Resources on Export Controls Implemented in Response to Russia’s Invasion of Ukraine (last updated June 24, 2022). Overview of Recent BIS Actions in Response to the Invasion of Ukraine Since February 24, 2022, BIS has implemented a series of stringent export controls that restrict Russia’s access to specific technologies and other items that it needs to sustain its military activity in Ukraine.4