Know Your Customer verification
Know Your Customer verification in Trade and Geopolitical Risk is no longer a banking-adjacent obligation. The U.S. Office of Foreign Assets Control and the Financial Crimes Enforcement Network have both issued guidance tying KYC failures directly to sanctions evasion exposure, pulling trade finance desks, freight intermediaries, and export credit facilities into scope alongside traditional financial institutions. Compliance teams are now mapping counterparty onboarding workflows against FinCEN's 2023 beneficial ownership final rule before examination cycles catch the gap.
Watch
- FinCEN beneficial ownership final rule: January 2024 phased compliance deadlines by entity type
- OFAC 50 Percent Rule interpretations expanding KYC obligations to indirect trade counterparties
- EU Anti-Money Laundering Authority launch: new cross-border KYC standards expected for trade sector firms
- Shell company red-flag typologies in freight and logistics: FinCEN advisory FIN-2023-A001
Recent material activity in Trade & Geopolitical Risk
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OFAC designates 14 entities linked to Russian defense procurement network
The Treasury Department's Office of Foreign Assets Control added 14 entities and 6 individuals to the Specially Designated Nationals list for their roles in procuring critical technology components for Russia's defense i…
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BIS adds 22 Chinese semiconductor entities to Entity List for advanced chip diversion
The Bureau of Industry and Security expanded export controls targeting Chinese semiconductor entities found to be diverting advanced computing chips through third-country intermediaries. New license requirements affect i…
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