FinCEN and BIS Caution Banks on Evasion of Russian Export Controls

FinCEN and the Department of Commerce Bureau of Industry and Security ("BIS") reminded financial institutions of their obligation to be mindful of potential attempts to evade Russia and Belarus export controls.

As previously covered, FinCEN and BIS provided financial institutions with (i) an overview of BIS's current export restrictions, (ii) a list of commodities of concern for possible export control evasion and (iii) select transactional and behavioral red flags to assist financial institutions in identifying suspicious transactions relating to export control. Since the last alert, BIS imposed additional export control restrictions against Russia, including on (i) "critical components" of aircrafts and tanks used for military efforts and (ii) technology consumer goods needed by Russia to sustain its war effort against Ukraine. BIS also imposed restrictions on countries, such as Iran and China, that have aided Russia’s invasion of Ukraine.