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§ 120.65

Foreign ownership and foreign control

ITAR · Part 120 · Subpart C

Foreign ownership: more than 50 percent of the outstanding voting securities owned by one or more foreign persons. Foreign control: one or more foreign persons have the authority or ability to establish or direct the general policies or day-to-day operations of the firm. Foreign control is presumed where foreign persons own 25 percent or more of the outstanding voting securities, unless one U.S. person controls an equal or larger percentage. These are rebuttable presumptions. They never auto-clear. Escalate: if the ownership or control percentage is unknown or disputed, stop — do not self-clear from GLEIF, the Consolidated Screening List, a cap-table screenshot, or a vendor attestation alone. Treat the firm as unresolved, document the gap, and notify or update DDTC under § 122.4 as applicable (material change in foreign ownership or foreign control).

  • >50% foreign voting securities = foreign ownership. ≥25% foreign voting securities = presumed foreign control unless one U.S. person holds an equal or larger block.
  • Unknown or disputed percentage → escalate. Never auto-clear from GLEIF or the CSL alone.
  • Material changes in foreign ownership or control are notified under § 122.4. Presumptions never auto-clear.
eCFR (primary) · § 120.65LII (secondary, unofficial)

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In this atlas

§ 122.4§ 120.66§ 122.2§ 120.63

Navigational aid — not legal advice. USML first (§ 120.11). Always open the live eCFR.

178 sections · 21 USML categories · 22 § 126.1 destinations · 1126 routes

eCFR Subchapter MDDTC ITAR