Working with Restricted Entities

The U.S. government maintains a number of lists of federally sanctioned, debarred or restricted persons and organizations.

Engagements with these entities whether that is a transaction or affiliation may require licensing under federal export controls, risk mitigation measures or proposal rejection (for Covered Individuals receiving Department of War or Department of Energy funding), or other federal export control or research security measures.

To address these concerns, University of California faculty and staff have access to Visual Compliance software tool which combines these government lists into one easy screening tool. You can sign up for Visual Compliance tool or contact your location Export Control Officer for assistance. If you determine that your activity involves an entity on one of these federal lists, please contact your location Export Control Officer for assistance.

University Research Security staff also have access to other business intelligence software tools which provide insight into entity ownership and affiliation structures in compliance with export control and research security requirements.

Highlights of federally sanctioned, debarred or restricted persons and organizations lists

Congressionally mandated lists

  • 1260H list - Congress mandated the creation and use of this list in the National Defense Authorization Act of 2021. It is a list of Entities Identified as Chinese Military Companies Operating in the United States. Example.
  • 1286 list - Congress mandated the creation and use of this list in the National Defense Authorization Act (NDAA) of 2019. This list is updated periodically by the Department of War(DOW) and is developed under guidance provided by NDAA 2019. Example.

Department of Commerce – Bureau of Industry and Security (BIS) lists

  • Denied Persons List - Individuals and entities that have been denied export privileges. Any dealings with a party on this list that would violate the terms of its denial order are prohibited.
  • Unverified List - End-users who BIS has been unable to verify in prior transactions. The presence of a party on this list in a transaction is a “Red Flag” that should be resolved before proceeding with the transaction.
  • Entity List - Parties whose presence in a transaction can trigger a license requirement.
  • Military End User (MEU) List - Parties whose presence in a transaction as a party to the transaction triggers a license requirement in certain situations.

Department of the Treasury – Office of Foreign Assets Control 

  • Specially Designated Nationals List - Parties who may be prohibited from export transactions based on OFAC’s regulations.
  • Foreign Sanctions Evaders List - Foreign individuals and entities determined to have violated, attempted to violate, conspired to violate, or caused a violation of U.S. sanctions on Syria or Iran, as well as foreign persons who have facilitated deceptive transactions for or on behalf of persons subject to U.S. Sanctions. Transactions by U.S. persons or within the United States involving Foreign Sanctions Evaders are prohibited.

Department of State – Directorate of Defense Trade Controls 

  • AECA Debarred List – Entities and individuals prohibited from participating directly or indirectly in the export of defense articles, including technical data and defense services.

Department of War – Prohibited Entity Lists

  • Department of War (DOW) maintains a Prohibited Entity List.
  • Funds appropriated for the DOW may not be used for grants, contracts, other transactions or other assistance to an institution of higher education if the purpose is to conduct fundamental research in collaboration with, or using equipment from, any entity named on any of the Prohibited Entity Lists. This funding prohibition also extends to the employees of such institutions.

Licensing under Export Controls

When considering whether or not a transfer of items or disclosure of information will require an export license, the following aspects are reviewed:

  • What is being transferred or disclosed  
  • Who and where it is going or who it is being disclosed to
  • Whether the destination or receiving location, individual or recipient is a restricted entity

If an export license is required, it takes a minimum of 6 weeks to have it approved by the U.S. government and must be in place prior to the export or disclosure. Noncompliance with the export regulations can result in penalties of $250,000 to $1 million per violation.