Moody's released a report detailing the potential impacts of a new US export control rule. The regulation shifts to an ownership-based model.
The change aims to close loopholes that allow firms to evade restrictions using affiliates. This shift could double the number of companies subject to export requirements. Moody's highlights that the regulation will introduce significant new compliance and operational risks for exporters.
The US government has currently paused enforcement of the rule. However, companies must prepare their compliance processes and supply chains for when the regulation takes effect.