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Risk Management

Export Controls & Sanctions Governance

Navigating the extraterritorial reach of US ITAR/EAR and EU Dual-Use Regulation.

Dual-Use: EU vs US Jurisdictions

European companies must often comply with two overlapping regimes. We map your products against both.

Feature EU Dual-Use (Reg. 2021/821) US EAR (Extraterritorial)
Scope Export from EU customs territory. "De Minimis" Rule: Applies to foreign items with >25% US-origin content (or >10% for embargoed countries).
Classification Goods, Software, Technology (Annex I). Commerce Control List (ECCN). Includes "Direct Product Rule" for items made with US tech.
Intangibles ITT (Intangible Technology Transfer). Deemed Export (Release of tech to foreign nationals inside the company).

Sanctions: The "Ownership & Control" Trap

Screening lists is only the first step. Our EDD (Enhanced Due Diligence) protocol investigates the corporate structure.

The 50% Rule (OFAC & EU)
Sanctioned Entity A
(40%)
+
Sanctioned Entity B
(11%)
=
Target Entity
(51% - BLOCKED)

Risk: The Target Entity is NOT on any public list, but trading with it is illegal due to aggregate ownership.

Internal Compliance Program (ICP)

We design ICPs compliant with EU Recommendation 2019/1318, covering the 7 core elements required for General Licences.

  • Top-level management commitment statement.
  • Transaction screening (End-Use / End-User).
  • Recordkeeping & Auditing protocols.

The 3 Lines of Defense

1st Line: Operations Sales & Logistics. They own the risk and perform "Red Flag" checks on new clients.
2nd Line: Trade Compliance Policy setting, ECCN Classification, and License determination.
3rd Line: Internal Audit Independent testing of the ICP effectiveness.