It was only a matter of time before regulators and law enforcement recognized the impact that the pandemic has had on our country and our economy – The Office of Foreign Assets Control (“OFAC”) issued guidance acknowledging...more
In 2019, the Department of Treasury’s Office of Foreign Asset Control (OFAC) issued important guidance on sanctions compliance programs. OFAC’s guidance sets out new and prescriptive requirements for sanctions compliance...more
OFAC continues to aggressively enforce its sanctions programs. In its latest enforcement action, OFAC agreed with Société Internationale de Télécommunications Aéronautiques SCRL (“SITA”), a Swiss telecom company, to an...more
3/5/2020
/ Airlines ,
Anti-Corruption ,
Aviation Industry ,
Compliance ,
Corporate Counsel ,
Corporate Misconduct ,
Corruption ,
Digital Service Providers ,
Economic Sanctions ,
Enforcement Actions ,
Ethics Breach ,
Failure to Comply ,
Global Terrorism Sanctions Regulations (GTSR) ,
Goods or Services ,
Investigations ,
Office of Foreign Assets Control (OFAC) ,
Regulatory Violations ,
SDN List ,
Software ,
Telecommunications ,
White Collar Crimes
OFAC had a big year in 2019 and 2020 looks like a continuation. In the last week, OFAC issued two enforcement actions — Eagle Shipping and Park Strategies....more
1/31/2020
/ Burma ,
Chapter 11 ,
Charter ,
Commercial Bankruptcy ,
Corporate Counsel ,
Corruption ,
Economic Sanctions ,
Enforcement Actions ,
Exports ,
Failure to Comply ,
General Licenses ,
Global Terrorism Sanctions Regulations (GTSR) ,
License Applications ,
Lobbying ,
Lobbyists ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
SDN List ,
Shipping ,
Vessels ,
White Collar Crimes
In an interesting end of year decision, issued on December 31, 2019, a District Court in Dallas issued a rejected OFAC’s enforcement action against Exxon Corporation imposing a $2 million penalty for violation of the Russia...more
1/23/2020
/ Blocked Person ,
Corruption ,
Due Process ,
Economic Sanctions ,
Enforcement Actions ,
Exxon Mobil ,
Failure to Comply ,
Fifth Amendment ,
Office of Foreign Assets Control (OFAC) ,
Oil & Gas ,
Prohibited Transactions ,
Regulatory Violations ,
Rosneft ,
Russia ,
Sanction Violations ,
SDN List
Moving on, 2019 was a big year in OFAC compliance. The Sanctions Compliance Guidance was a major change in sanctions compliance. OFAC has set high expectations for compliance. Whether companies have received and responded to...more
While DOJ had its biggest year in FCPA enforcement, OFAC quietly had a record year in enforcement. OFAC collected approximately $1.28 billion (yes, with a B) in 26 separate enforcement actions. That is quite an increase...more
1/21/2020
/ Anti-Corruption ,
Corruption ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Distributors ,
Economic Sanctions ,
Enforcement Actions ,
Export Controls ,
Exports ,
FCPA Corporate Enforcement Policy (CEP) ,
Foreign Corrupt Practices Act (FCPA) ,
Office of Foreign Assets Control (OFAC) ,
Risk Assessment ,
Russia ,
Securities and Exchange Commission (SEC) ,
Self-Reporting ,
Suppliers ,
Supply Chain ,
Third-Party Relationships ,
Third-Party Risk ,
Ukraine
The Treasury Department’s Office of Foreign Asset Control (“OFAC”) continues to rack up settlements. Two travel insurance companies recently settled OFAC enforcement actions for violations of the Cuban Embargo....more
12/19/2019
/ Canada ,
Consumer Insurance Products ,
Cuba ,
Economic Sanctions ,
Embargo ,
Enforcement Actions ,
EU ,
Foreign Policy ,
Foreign Relations ,
Office of Foreign Assets Control (OFAC) ,
Regulatory Requirements ,
Sanction Violations ,
Travel Insurance ,
Travelers ,
U.S. Treasury
Apollo Aviation Group, now Carlyle Aviation Partners, agreed to pay OFAC $210,600 for 12 violations of the Sudanese Sanctions Program. Carlyle acquired Apollo in December 2018, and Carlyle was not involved in the...more
12/5/2019
/ Aircraft ,
Aircraft Equipment ,
Aircraft Sales ,
Airlines ,
Anti-Corruption ,
Aviation Industry ,
Compliance ,
Contract Terms ,
Economic Sanctions ,
Enforcement Actions ,
Exports ,
Failure to Comply ,
Foreign Policy ,
Office of Foreign Assets Control (OFAC) ,
Release Agreements ,
Sanction Violations ,
SDN List ,
Sudan ,
Ukraine ,
United Arab Emirates (UAE) ,
White Collar Crimes
OFAC's aggressive enforcement program continues. Recently, OFAC announced settlements with Apollo Aviation and Apple. Both of these cases underscore the importance of enhancing OFAC compliance programs.
In this Episode,...more
OFAC’s aggressive enforcement program continues to bear fruit. The latest settlement involved GE and three of its subsidiaries, which agreed to pay $2.7 million for 289 alleged violations of the Cuba Sanctions Program. So...more
10/8/2019
/ Compliance ,
Corporate Counsel ,
Corruption ,
Cuba ,
Economic Sanctions ,
Enforcement Actions ,
Failure to Comply ,
General Electric ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
SDN List ,
Settlement ,
White Collar Crimes
In a major announcement and escalation of the sanctions regime targeting President Maduro and Venezuela, on August 5, 2019, the Trump Administration issued a new Executive Order 13884 to block all property of the Venezuela...more
In yet another enforcement action, OFAC announced a $1.709 million settlement with PACCAR, Inc., for 63 apparent violations of the Iran Sanctions Program by DAF Trucks, a wholly-owned subsidiary based in Eindhoven,...more
8/13/2019
/ Compliance ,
Economic Sanctions ,
Enforcement Actions ,
Failure to Comply ,
Internal Investigations ,
Iran ,
Iran Sanctions ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
Settlement ,
White Collar Crimes
As companies elevate their “game” in sanctions compliance, it is important that compliance officers critically examine the strengths and weaknesses of their compliance programs. Many companies already have a screening...more
Based on its aggressive enforcement program and its recently issued Framework for Sanctions Compliance Programs, OFAC has established a new era in sanctions compliance. Trade compliance is often siloed into its own...more
As part of its new corporate compliance credit program, the Justice Department’ Antitrust Division issued, for the first time in its history, guidance to assist prosecutors in the evaluation of compliance programs at the...more
7/17/2019
/ Antitrust Division ,
Antitrust Investigations ,
Antitrust Provisions ,
Antitrust Violations ,
Criminal Investigations ,
Department of Justice (DOJ) ,
Economic Sanctions ,
Government Investigations ,
Incentives ,
Regulatory Oversight ,
Regulatory Standards ,
Strict Compliance ,
White Collar Crimes
OFAC is clearly sending a message about sanctions enforcement and compliance responsibilities. OFAC is aggressively seeking out new targets for enforcement. OFAC continues to focus on Iran, Cuba, Venezuela and North Korea,...more
7/11/2019
/ Anti-Corruption ,
Bribery ,
Compliance ,
Corporate Misconduct ,
Corruption ,
Economic Sanctions ,
Enforcement Actions ,
Financial Transactions ,
Global Terrorism Sanctions Regulations (GTSR) ,
Office of Foreign Assets Control (OFAC) ,
Terrorist Financing Regulations ,
Western Union
In yesterday’s posting, I examined the General Factors identified by OFAC to determine whether to initiate a civil penalty proceeding and the amount of any civil monetary penalty. After analyzing these factors, OFAC...more
The Treasury Department’s Office of Foreign Asset Control is an enforcement agency – it is not a regulatory agency.
That sounds like a lot of bureaucratic speak but it does have some real significance. OFAC staff view...more
There is no question that OFAC continues to dominate the enforcement landscape this year. OFAC has provided plenty of warning and notice to global companies, especially those in the manufacturing and industrial sectors....more
6/13/2019
/ Compliance ,
Corruption ,
Economic Sanctions ,
Enforcement Actions ,
Foreign Policy ,
Industrial Products ,
Iran ,
Iran Sanctions ,
Manufacturers ,
Maritime Transport ,
Office of Foreign Assets Control (OFAC) ,
SDN List ,
Supply Chain ,
Vessels ,
White Collar Crimes ,
Wire Transfers
When providing compliance program guidance, the Justice Department and OFAC, like every compliance practitioner, will pay homage to the relatively obvious point that there is no one-size-fits-all compliance solution. ...more
The term “internal controls” is a loaded one – it morphs in various ways depending on the context. Sometimes it is a shorthand for financial accounting controls; other times it encompasses a company’s compliance controls...more
OFAC’s new framework guidance for sanctions compliance programs stretched into new territory with its risk assessment requirement. This new approach reflects OFAC’s recent aggressive enforcement programs....more
If you follow my blog, you know I am not one to embrace hyperbole. So, forgive me for stretching a little here, but the OFAC Framework for Sanctions Compliance Programs is a game changer. Let me explain why I am saying...more
OFAC’s new compliance framework includes a valuable section on common root causes of OFAC violations. OFAC has included this discussion to assist companies in designing, updating and amending their respective Sanctions...more