Verified Purchasing & Product Diversion Prevention
Driving compliance, enabling trust
At ADI, our customer and partner’s trust in our integrity is vital. We strive to deliver the most advanced technology solutions while having a strong focus on legal and regulatory compliance. Our customer review process is designed to help ensure that our business practices are consistent with our organizational values.
Understanding and preventing product diversion
Unauthorized resale, diversion, and misuse of semiconductors is a serious, industry-wide issue that ADI is actively working to address. We are committed to legal compliance, transparency, and protecting our technologies from illicit diversion. ADI continues to strengthen our compliance practices, detect third-party abuse, and support efforts by U.S. lawmakers, federal agencies, and law enforcement to stop improper use and ensure secure, lawful distribution of our products.
Securing technology from misuse
ADI strictly prohibits the misuse or diversion of our products, especially to sanctioned entities or unauthorized end users. Our processes are designed to exceed legal requirements with robust compliance measures, including enhanced checks through a purchasing verified process, audits of distribution partners, and a dedicated cross-functional team focused on high-risk products and regions. We actively monitor red flags and collaborate with government and law enforcement to combat grey market activity. ADI is committed to the integrity of our products and will continue taking decisive action to detect reselling, prevent illicit diversion and unauthorized transshipment.
DIVERSION RISK FAQs
Q: What is Diversion Risk?
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A: Diversion Risk occurs when a product is obtained with the intent to deliver the goods to an unauthorized location and/or party; or for which the person has reason to know the government would not authorize the export of the equipment.
Q: What are some red flags to be aware of with Diversion Risk?
A: The US Government and the G7 recommend taking into account these red flag indicators for Diversion Risk, which include but are not limited to the following:
- Address mismatch
- Reluctance to offer information
- A product’s capabilities do not fit
- Cash Payment
- No customer website
- Customer unfamiliar with the product’s performance
- Freight Forwarding firm is listed as the product’s final destination
- Buyer is evasive and especially unclear
- Identified as a broker or reseller
Q: Are there other ways to understand and identify Red Flags?
A: For more details on Red Flags, please visit the G7 Red Flag Guidance resource.
Q: What is ADI doing to prevent illicit diversion?
A: ADI is committed to preventing the unauthorized resale, illicit diversion, and misuse of our products, and to complying with applicable laws and regulations in the countries where we operate. We strongly condemn the illicit diversion and unintended misuse of our products and have taken a “compliance plus” approach to address this challenge. We have robust internal policies, controls, and practices to mitigate the risk of diversion, many of which go beyond legal requirements. We monitor and routinely audit our distribution channels for unauthorized sales and product misuse, and we have enhanced our internal audit program. ADI also has taken a number of significant and proactive measures to mitigate the risk of illicit diversion through the grey market. While we have taken these steps and believe we have robust policies, controls and practices, our work here continues. We regularly review our practices and consider further enhancements to our programs to address the serious issue of illicit diversion.