OFAC’s new Framework for Sanctions Compliance Programs incorporates a number of important principles from Justice Department and US Sentencing Guideline requirements for effective compliance programs. ...more
OFAC’s Framework for Sanctions Controls Program is a heightening of the importance of ethics and compliance program and reflects significant expectations for implementing effective compliance strategies. ...more
On the heels of the Justice Department’s announcement of its new compliance guidance, on May 2, 2019, the Treasury Department’s Office of Foreign Asset Control (“OFAC”) issued its promised guidance for sanctions compliance...more
The Treasury Department’s Office of Foreign Asset Control (OFAC”) continues its enforcement run. In a recent case against Haverly Systems, Inc., OFAC sent an important reminder to US companies about compliance with the...more
The Justice Department and the Treasury Department’s Office of Foreign Asset Control (OFAC) are on a roll. Global banks are facing renewed prosecutions, along with aggressive sanctions prosecutions of companies for...more
4/25/2019
/ Anti-Corruption ,
Banking Sector ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Economic Sanctions ,
Export Controls ,
Failure to Comply ,
Guilty Pleas ,
International Emergency Economic Powers Act (IEEPA) ,
Iran Sanctions ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
Settlement Agreements ,
White Collar Crimes
We can add Acteon to the list of OFAC settlements for 2019, which is quickly turning into a robust sanctions’ enforcement year. Acteon is a UK based company, which provides subsea services in the oil and gas industry. ...more
OFAC is definitely off to a fast start this year – it recently announced its fourth enforcement action for 2019. So far, OFAC has collected over $7 million in civil penalties. ...more
OFAC continues to pile up enforcement actions for sanctions violations. In yet another example of a failure of companies to address compliance, to follow up on compliance and to ensure ultimate compliance, AppliChem...more
What a difference a year makes — The Treasury Department’s Office of Foreign Asset Control (“OFAC”) announced two sanctions settlements in the beginning of 2019, a stark difference from 2018 when OFAC announced its first...more
2/15/2019
/ Cosmetics ,
Economic Sanctions ,
Enforcement Actions ,
Failure to Comply ,
Goods or Services ,
Imports ,
Internal Controls ,
Iran Sanctions ,
North Korea ,
Obstruction of Justice ,
Office of Foreign Assets Control (OFAC) ,
Settlement Agreements ,
Supply Chain
Business operations can be riddled with inefficiencies. It is easy to spot them inside a company. The same rule applies to ethics and compliance programs. ...more
1/22/2019
/ Anti-Corruption ,
Anti-Money Laundering ,
Compliance ,
Corruption ,
Economic Sanctions ,
Ethics ,
Export Administration Regulations (EAR) ,
ITAR ,
Trade Suspensions ,
Voluntary Disclosure Agreement ,
White Collar Crimes
The Treasury Department’s Office of Foreign Asset Control (OFAC) rarely backs down. Recently, in response to significant ownership and governance changes, OFAC removed three Russian companies, EN+ Group (EN+), UC Rusal plc...more
1/10/2019
/ Board of Directors ,
Change in Control ,
Change of Ownership ,
Corruption ,
Economic Sanctions ,
Independent Directors ,
Office of Foreign Assets Control (OFAC) ,
Regulatory Requirements ,
Russia ,
Settlement Agreements ,
White Collar Crimes
The Department of Treasury’s Office of Foreign Asset Control (OFAC) has steadily expanded its influence in the enforcement landscape. Global companies now face a complex regime of sanctions that require careful navigation....more
The Department of Treasury’s Office of Foreign Asset Control (“OFAC”) recently announced a settlement against Cobham Holdings (and its former subsidiary Aeroflex/Metelics, Inc. (“Metelics”, a software company) for $87,507 for...more
12/20/2018
/ Compliance ,
Corruption ,
Economic Sanctions ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
SDN List ,
Settlement Agreements ,
Software ,
Technology Sector ,
Telecommunications ,
U.S. Treasury ,
Ukraine ,
White Collar Crimes
On November 5, 2018 the Department of Treasury’s Office of Foreign Asset Control (“OFAC”) completed the process to re-impose the Iran sanctions program. The 180-day wind-down period for termination of the United States’...more
Okay, I have to admit – it is getting hard to keep up with all the changes to the Russia Sanctions Program. The Treasury Department, Office of Foreign Asset Control’s imposition of the Oligarch Sanctions and Congress’...more
9/11/2018
/ Ammunition ,
CAATSA ,
Commerce Control List ,
Compliance ,
Economic Sanctions ,
Export Controls ,
Foreign Relations ,
ITAR ,
Licensing Rules ,
National Security ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
Trump Administration ,
US Munitions List ,
US Trade Policies
The Trump Administration issued a new executive order on August 6, 2018, in order to reimpose the first tranche of the Iran sanctions lifted by the former Joint Comprehensive Plan of Action (“JCPOA”). ...more
8/30/2018
/ Banking Sector ,
Economic Sanctions ,
Energy Sector ,
Executive Orders ,
Financial Institutions ,
Foreign Policy ,
Foreign Relations ,
Foreign Subsidiaries ,
Goods or Services ,
Iran ,
Iran Sanctions ,
Joint Comprehensive Plan of Action (JCPOA) ,
Office of Foreign Assets Control (OFAC) ,
Oil & Gas ,
Petroleum ,
SDN List ,
Trump Administration
I will admit it – I changed this posting from its original draft. I intended to write about the absence of any OFAC enforcement actions for 2018. I went to double-check the OFAC enforcement website, and lo and behold, OFAC...more
6/14/2018
/ Compliance ,
Corporate Counsel ,
Corruption ,
Economic Sanctions ,
Enforcement Actions ,
Ericsson ,
Office of Foreign Assets Control (OFAC) ,
Regulatory Violations ,
Sudan ,
Telecommunications ,
White Collar Crimes
The Trump Administration Treasury Department’s Office of Foreign Asset Control activity has been interesting to watch. On the one hand, OFAC has been implementing aggressive sanctions against Russia in reaction to Russia’s...more
Just as businesses were growing or planning to grow into Iran, they had the proverbial rug pulled out from under them. Last week, on May 8, 2018, the administration announced its intention to withdraw from the Joint...more
5/14/2018
/ Economic Sanctions ,
Foreign Policy ,
Foreign Relations ,
Imports ,
Iran ,
Iran Sanctions ,
Joint Comprehensive Plan of Action (JCPOA) ,
Nuclear Weapons ,
Office of Foreign Assets Control (OFAC) ,
SDN List ,
Trump Administration
Despite our political dialogue and the often-heard charges of fake news and lying, telling the truth still matters in a variety of contexts. For example, Special Counsel Mueller has made various characters in the Russia...more
5/1/2018
/ Economic Sanctions ,
Enforcement Actions ,
Export Administration Regulations (EAR) ,
Exports ,
False Statements ,
Iran ,
North Korea ,
Settlement Negotiations ,
Telecommunications ,
U.S. Commerce Department ,
White Collar Crimes ,
ZTE
On April 6, 2018, OFAC announced a new round of sanctions against Russian individuals and companies. Relying on its authority under existing executive orders, OFAC designated seven Russian oligarchs and 12 companies they own...more
Compliance officers are a much more collaborative group of professionals than lawyers. Compliance officers share information with colleagues about compliance experiences, best practices and strategies. The compliance...more
Sanctions compliance is challenging because of the changing nature of sanctions regulations and individuals identified as Specially Designated Nationals. With each new administration, foreign policy priorities are usually...more
12/7/2017
/ Compliance ,
Cuba ,
Economic Sanctions ,
Exports ,
Foreign Policy ,
North Korea ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
Sanction Violations ,
SDN List ,
Sudan ,
Ukraine ,
Venezuela
Politics and sanctions law go hand-in-hand. In a rare instance of bi-partisanship, Congress united to constrain the administration’s ability to modify the existing sanctions program against Russia. At the same time, Congress...more
8/8/2017
/ Aviation Industry ,
Banking Sector ,
Compliance ,
Economic Sanctions ,
Foreign Relations ,
Iran ,
Iran Sanctions ,
National Security ,
North Korea ,
Office of Foreign Assets Control (OFAC) ,
Oil & Gas ,
Russia ,
Technology Sector ,
Vessels
In a bizarre enforcement action, The Treasury Department’s Office of Foreign Asset Control (“OFAC”) assessed a $2 million civil monetary penalty against ExxonMobil (“Exxon”) for violations of the Ukraine sanctions....more