The Division of Examinations is issuing this Risk Alert to notify investment advisers, broker-dealers, and other market participants of a recent action relating to investments in securities associated with Communist Chinese military companies, as well as investors transacting in such securities. The Division encourages firms to review and assess the impact of the EO, for their own investments as well as on behalf of investors and clients, and to evaluate their related processes. We also encourage firms to continue to review OFAC’s website for additional guidance.

View the Risk Alert: Executive Order on Securities Investments that Finance Communist Chinese Military Companies