Sanctions, Export-Control & Bank KYB · OpenChainGraph v0.4

Sanctions, Export-Control & Bank KYB Conformance

Ten tools covering the full sanctions, export-control, and bank KYB lifecycle: OFAC/EU/BIS 50%-rule aggregate-ownership screening (the flagship), list coverage conformance vs EU/UN/UK/OFAC, fuzzy-match engine calibration (Wolfsberg-aligned), ECCN/dual-use classification (EU Annex I updated 15 Nov 2025), anti-circumvention due diligence, no-Russia clause pack builder, program quality scoring, FinCEN CDD Rule 31 CFR 1010.230 beneficial ownership attribution (25% bank KYB threshold -- not CTA/BOI), and W-8 series structural validation for withholding compliance. Agent-native, hash-anchored, zero PII; synthetic entities and config only.

BIS Affiliates Rule in force 29 Sep 2025 EU 20th sanctions package 23 Apr 2026 OFSI → UK Sanctions List 28 Jan 2026 EU Annex I updated 15 Nov 2025 OFAC 50% rule · EU 50% rule · BIS Affiliates Rule Wolfsberg Sanctions Screening Guidance (2019) Sanctions & Export-Control FinCEN CDD Rule 31 CFR 1010.230 · 25% Bank KYB IRS W-8 Series · Treas. Reg. §1.1441-1
⚠ REGULATORY NOTICE: BIS Affiliates Rule in force 29 Sep 2025. EU 20th sanctions package in force 23 Apr 2026 (Art. 12g no-Russia clause). OFSI Consolidated List closed 28 Jan 2026; UK Sanctions List is sole UK authority. EU dual-use Annex I updated 15 Nov 2025. FinCEN CDD Rule: ART-268 implements 31 CFR 1010.230 bank KYB customer due diligence (25% threshold) -- NOT the Corporate Transparency Act (CTA) / BOI domestic reporting rule (31 USC 5336) removed by FinCEN IFR 2025-03-21. For OFAC 50% Rule sanctions aggregation see ART-91. All tools operate on synthetic entities only. Decision-support drafts, not legal advice.

Sanctions & Export-Control Tools (ART-90–97)

8 tools covering sanctions ownership traversal, list coverage, fuzzy-match, ECCN/dual-use, anti-circumvention, and program quality. Synthetic entities only; zero PII.
ART-90 · FIT DIAGNOSTIC
Sanctions & Export-Control Screening Fit Diagnostic
5-dimension A–F fit diagnostic: list coverage, ownership 50%, fuzzy match, circumvention, ops. Routes to the right sanc-*/ec-* chain.
run_sanctions_screening_fit
ART-91 · FLAGSHIP · OWNERSHIP GRAPH
Ownership 50%-Rule Aggregator
BFS aggregate-ownership traversal over a synthetic graph. OFAC/EU/BIS constructively-blocked verdicts. BIS Affiliates Rule 29 Sep 2025. OFAC 50% Rule sanctions (not CDD). For FinCEN CDD 25% bank KYB see ART-268.
aggregate_ownership_50pct
ART-92 · LIST COVERAGE
Screening List-Coverage Checker
Validates screening config against OFAC/EU/UN/UK coverage matrix with nexus gating. OFSI closure 28 Jan 2026 flagged.
check_screening_list_coverage
ART-93 · MODEL GOVERNANCE
Fuzzy-Match Calibration Scorer
FPR/recall/F1 on a synthetic labelled name-pair set. Threshold calibration sweep 0.60–0.95 with recommendation. Wolfsberg-aligned.
score_fuzzy_match_calibration
ART-94 · EXPORT CLASSIFICATION
ECCN / Dual-Use Classifier
Product attributes → ECCN + EU Annex I (updated 15 Nov 2025) + regime (Wassenaar/MTCR/AG/NSG) + licence logic including emerging-tech controls.
classify_eccn_dual_use
ART-95 · CIRCUMVENTION DD
Circumvention Diligence Assessor
Due-diligence scoring vs EU 20th-package safe harbour (23 Apr 2026). Liability allocation: shifted / partial / seller-liable. Diversion risk.
assess_circumvention_diligence
ART-96 · CLAUSE PACK
No-Russia-Clause Pack Builder
Generates standard/enhanced no-Russia clause (Art. 12g) + DD-evidence checklist. Completeness grade A–F. EU 20th package.
build_no_russia_clause_pack
ART-97 · QUALITY SCORECARD
Sanctions Screening-Program Quality Scorer
Wolfsberg-aligned composite grade across 5 dimensions: list coverage, match calibration, alert tuning, escalation workflow, model validation.
score_sanctions_screening_quality

Bank KYB Tools: FinCEN CDD Rule & W-8 Series (ART-268–269)

2 tools for bank customer due diligence under FinCEN CDD Rule 31 CFR 1010.230 and IRS W-8 withholding compliance. Synthetic entity IDs and structural form codes only; zero PII.
⚠ REGIME SCOPE: ART-268 implements FinCEN CDD Rule 31 CFR 1010.230 bank KYB customer due diligence (25% beneficial-ownership threshold). This is NOT the Corporate Transparency Act (CTA) / BOI domestic reporting rule (31 USC 5336) -- domestic CTA/BOI reporting for US companies was removed by FinCEN IFR effective 2025-03-21. For OFAC 50% Rule sanctions aggregation (50% threshold, different regime) see ART-91 above.
ART-268 · compliance mandate · BANK KYB
FinCEN CDD 25% Beneficial Ownership Attribution
Recursive indirect natural-person beneficial ownership computation via ownership-tier multiplication. 25% threshold per FinCEN CDD Rule 31 CFR 1010.230. Returns is_beneficial_owner (bool), total_indirect_pct, and per-person breakdown. Exactly 25% ownership IS a beneficial owner (≥25). Synthetic entity IDs only.
compute_cdd_ownership_25pct
ART-269 · compliance mandate · W-8 SERIES
W-8 Series Structural Validator
Validates W-8 series form structural consistency: form-type/Ch.3 status compatibility (FORM_CH3_MISMATCH), Ch.3/Ch.4 FATCA cross-check (CH3_CH4_INCONSISTENT), 3-year validity window per Treas. Reg. §1.1441-1(e)(4)(ii), and treaty dividend rate against IRS Pub 901 (TREATY_RATE_MISMATCH). Structural form codes only; no TIN.
validate_w8_series_structural

Chains (sanc-* / ec-*)

8 multi-tool sanctions and export-control chains. Start at sanctions-fit (the entry router) or jump directly to a focused chain.
sanctions-fit · ENTRY ROUTER
Sanctions & Export-Control Screening Fit Diagnostic
Single-node scoping chain. Routes to all other sanc-*/ec-* chains based on program-grade gaps.
ART-90
sanctions-ownership · FLAGSHIP
50%-Rule Ownership Screening
OFAC/EU/BIS aggregate-ownership traversal → list-coverage conformance → audit receipt. BIS Affiliates Rule in force.
ART-91 → ART-92 → cry-05
sanctions-list-coverage
Screening List-Coverage Conformance
List config conformance vs EU/UN/UK/OFAC matrix (OFSI closure 28 Jan 2026) → Merkle integrity.
ART-92 → cry-04
sanctions-fuzzy-calibration
Fuzzy-Match Calibration
Calibration scoring on synthetic name-pair set → hash-anchored audit receipt. Wolfsberg-aligned.
ART-93 → cry-05
export-control-eccn
ECCN / Dual-Use Classification
Product attributes → ECCN + EU Annex I + regime + licence requirement → Merkle integrity. Decision-support draft.
ART-94 → cry-04
export-control-circumvention
Anti-Circumvention Diligence & No-Russia Clause
Classification → circumvention DD + liability allocation → no-Russia clause + evidence pack. Full export-control diligence lifecycle.
ART-94 → ART-95 → ART-96
sanctions-screening-quality
Sanctions Screening-Program Quality
Fuzzy calibration → list coverage → Wolfsberg program quality grade → audit receipt. End-to-end conformance score.
ART-93 → ART-92 → ART-97 → cry-05
sanctions-audit-pack · TERMINAL
Sanctions & Export-Control Audit Pack
Convergence terminal. Merkle integrity over the screening decision set → Merkle-root receipt → regulator-framed cover memo.
cry-04 → cry-05 → ptg-01

Bank KYB Chain (FinCEN CDD & W-8)

Gated 2-step chain: FinCEN CDD 25% ownership attribution → W-8 structural validation (runs only when beneficial owner identified).
kyb-beneficial-ownership-attribution · BANK KYB · Gated
KYB Beneficial Ownership Attribution
Step 1: ART-268 computes recursive indirect beneficial ownership. §21.4 gate reads /is_beneficial_owner: false exits early (no beneficial owner at or above 25%, chain terminates). Default (is_beneficial_owner=true, beneficial owner identified) proceeds to Step 2: ART-269 W-8 series structural validation for withholding compliance. Produces complete audit artifacts for both branches. NOT CTA/BOI. Synthetic entity IDs only; no TIN.
Step 1: compute_cdd_ownership_25pct → [GATE /is_beneficial_owner] → Step 2: validate_w8_series_structural
§21.4 GATED · decisions[] recorded

Chain Topology

How all chains relate, including the new Bank KYB chain.
sanctions-fit (entry router) ↓ routes to ────────────────────────────────────── sanctions-ownership ART-91 → ART-92 → cry-05 sanctions-list-coverage ART-92 → cry-04 sanctions-fuzzy-calibration ART-93 → cry-05 export-control-eccn ART-94 → cry-04 export-control-circumvention ART-94 → ART-95 → ART-96 sanctions-screening-quality ART-93 → ART-92 → ART-97 → cry-05 ↓ all feeds into ────────────────────────────────────── sanctions-audit-pack (TERMINAL) cry-04 → cry-05 → ptg-01 kyb-beneficial-ownership-attribution (bank KYB, gated, independent) Step 1: compute_cdd_ownership_25pct [GATE /is_beneficial_owner] is_beneficial_owner=false → END (no BO at 25%) default → Step 2: validate_w8_series_structural (terminal)

Key Regulatory Dates

Reference dates baked into the kernels. Verify against current official sources before use.
BIS · 15 CFR §744
BIS Affiliates Rule
In force 29 Sep 2025. Entity List restrictions auto-extend to affiliates ≥50% aggregate-owned by the listed entity.
EU COUNCIL REG.
EU 20th Sanctions Package
In force 23 Apr 2026. Mandatory no-Russia clause (Art. 12g) for controlled goods; seller liability shifted where DD is documented.
OFSI / UK
OFSI Consolidated List Closure
Closed 28 Jan 2026. UK Sanctions List (maintained by OFSI) is now the sole UK sanctions authority.
EU REG. 2021/821
EU Dual-Use Annex I Update
Updated 15 Nov 2025. New controls for quantum tech, advanced semiconductors, additive manufacturing, and peptide synthesizers.
OFAC / US
OFAC 50% Rule
Ongoing. Entities 50%+ owned (directly or in aggregate) by a listed SDN are blocked even if not separately listed. (ART-91, not ART-268.)
FinCEN / 31 CFR 1010.230
FinCEN CDD Rule · Bank KYB
In force 2018, ongoing. Financial institutions must identify and verify natural persons owning 25%+ (direct or indirect) of legal entity customers. 25% threshold (not 50%). This is bank KYB CDD -- NOT the CTA/BOI domestic reporting rule removed by FinCEN IFR 2025-03-21.
IRS / TREAS. REG. §1.1441-1
W-8 Series Validity & Withholding
Ongoing. W-8 forms expire 3 years after signing (December 31 of the third year). Form/chapter-status compatibility, Ch.3/Ch.4 FATCA cross-checks, and treaty rates per IRS Pub 901.
Sanctions, Export-Control & Bank KYB Conformance · OpenChainGraph hub · AINumbers.co · OCG v0.4 SPEC
All tools operate on synthetic entities and config only. Zero PII. Decision-support drafts, not legal advice. Verify all regulatory dates and thresholds against current official sources.