FinCEN and BIS Warn of Attempts to Evade Russian Export Controls

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

In the joint alert, 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. FinCEN and BIS explained that following the Russian invasion of Ukraine, a series of export controls were put in place to restrict Russia's access to the necessary technologies required to sustain its war efforts. These restrictions targeted Russia's defense, energy, aerospace and maritime industries, as well as similar industries in Belarus.

FinCEN and BIS encouraged financial institutions that plan on engaging with Russian-linked entities in select industry sectors to rely on internal risk assessments and mitigation protocols pursuant to Bank Secrecy Act standards. FinCEN and BIS also reminded financial institutions of their obligation to report suspected export control evasion activity to BIS and issued guidance on how these reports should be submitted.