Understanding Persons of a Country of Concern (COC)

Who is considered a citizen or permanent resident of a Country of Concern?

A citizen or permanent resident of a Country of Concern (COC) is an individual who holds nationality or has been granted official permanent residency status within a nation specifically designated as a COC by relevant authorities. This classification is paramount for identifying individuals who might be subject to particular governmental regulations, heightened scrutiny, or specific compliance requirements due to their direct legal and enduring ties to such countries. However, a crucial exception applies: if an individual simultaneously possesses U.S. citizenship or has been granted U.S. permanent residency, they are generally not categorized solely as a Person of a COC under this specific criterion. This vital distinction helps to accurately differentiate between primary national allegiances and potential dual statuses, ensuring the definition precisely targets individuals whose primary association lies with the designated Country of Concern.

• Individuals holding citizenship of a Country of Concern.
• Individuals holding permanent residency in a Country of Concern.
• Excludes those also holding U.S. citizenship or permanent residency.

What defines an entity with business ties to a Country of Concern?

An entity is definitively considered to possess significant business ties to a Country of Concern (COC) when its core operational, legal, or administrative foundations are substantially and demonstrably rooted within that designated nation. This comprehensive category is designed to encompass various organizational structures, ensuring that businesses with profound and verifiable connections are appropriately identified. Such defining ties include establishing the principal place of business directly within the COC, signifying that the primary operational hub and central activities are situated there. Furthermore, if an entity is officially headquartered in a COC, indicating that its central management, strategic decision-making, and executive leadership reside in the designated country, it unequivocally falls under this definition. Additionally, entities formally incorporated in a COC or legally organized under its specific laws are also included, reflecting their foundational legal establishment within the country's jurisdiction.

• Principal place of business located within the Country of Concern.
• Headquartered within the Country of Concern.
• Incorporated within the Country of Concern.
• Organized under the laws of the Country of Concern.

How are governments and related entities of a Country of Concern defined?

The comprehensive definition of a Person of a Country of Concern extends robustly to encompass the government of a designated nation and all its closely associated entities, explicitly acknowledging the direct influence, authority, and control consistently exerted by state apparatuses. This critical category explicitly includes the government of the Country of Concern itself, broadly encompassing all its official branches, departments, agencies, and instrumentalities, regardless of their specific function. Furthermore, any individual person acting directly for or demonstrably on behalf of the government of a COC is also precisely classified under this criterion, effectively capturing all individuals who serve as official agents, representatives, or proxies of the state. This ensures that actions undertaken by government officials or those operating under their direct instruction are fully considered. Lastly, entities where the government of a COC holds 50% or more direct or indirect ownership or exercises significant, demonstrable control are also included, effectively preventing circumvention through state-owned enterprises or controlled organizations.

• The government of the Country of Concern itself.
• Any person acting for or on behalf of the COC government.
• Entities with 50% or more government ownership or control.

When does an entity's ownership by COC individuals or entities become a concern?

An entity unequivocally becomes classified as a Person of a Country of Concern when 50% or more of its total ownership, whether direct or indirect, is demonstrably held by individuals or entities already precisely classified under the preceding criteria (1), (2), or (3). This crucial rule is specifically designed to prevent the circumvention of established regulations by establishing new corporate entities that are, in essence, fundamentally controlled or substantially influenced by COC-affiliated parties. It rigorously ensures that the scope of concern extends well beyond direct, immediate ties to comprehensively include organizations that are significantly funded, directed, or beneficially owned by citizens, permanent residents, businesses, or governmental bodies of a designated Country of Concern. This broadens the definition to effectively capture complex, multi-layered ownership structures and meticulously maintain the integrity of the overall classification framework.

How does indirect ownership through other COC entities impact classification?

The classification of a Person of a Country of Concern extends even further to meticulously include entities that are 50% or more owned by other entities already precisely identified and designated under criterion (4). This specific provision is vital for addressing intricate, multi-layered ownership structures, ensuring that indirect control exerted by COC-affiliated parties does not escape necessary scrutiny or regulatory oversight. It fundamentally means that if an entity is primarily owned by another entity that itself is considered a COC due to its substantial ownership by individuals, businesses, or governments of a Country of Concern, then this newly identified entity also automatically falls under the COC designation. This cascading rule is absolutely vital for comprehensive identification, effectively preventing overly complex corporate structures from obscuring the ultimate beneficial ownership and control originating from a designated Country of Concern.