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Office of Foreign Assets Control (OFAC) Regulations, Embargoes & Sanctions
The U.S. Treasury Office of Foreign Assets Control (OFAC) is responsible for regulating U.S. economic trade sanctions with national security as the primary concern.
Types of sanctions regulated by OFAC address international financial dealings with foreign countries, individuals, and entities that are considered to be of interest to U.S. foreign policy and national security.
OFAC regulations must be taken seriously by anyone engaging in international financial transactions because they’re strongly enforced; violations come with significant penalties including criminal charges, decades of prison time, millions of dollars in fines, and the loss of export privileges.
OFAC sanctions frequently undergo changes and amendments due to national security threats and foreign policy changes. It’s crucial to continually monitor whether your global business practices are within the shifting bounds of economic trade sanctions.
Sequoia Legal is a Denver law firm that deftly handles compliance with OFAC U.S. economic sanctions, working with organizations to create programs and educate employees on how to avoid committing OFAC violations.
With experienced OFAC attorneys, full attention can be given to global business operations and growth without accidental compliance violations and their accompanying penalties.
What Do We Do?
Sequoia Legal helps businesses optimize international economic transactions while minimizing the risk of committing a U.S. trade sanctions violation.
We perform a variety of services that help you comply with OFAC restrictions, and we minimize the time, expense, and trouble involved if you do find yourself running afoul of any regulations.
We work with organizations to establish internal OFAC programs. These programs ensure that company policies are in alignment with sanctions compliance and that employees are educated on best practices for avoiding accidental violations.
When an organization knows or suspects that an OFAC violation has occurred, our experienced OFAC compliance attorneys will promptly and thoroughly work to help you achieve penalty mitigation.
Sequoia Legal helps your organization handle all OFAC-related matters to efficiently and effectively maintain sanctions compliance while operating a global business.
Our Successful Cases
Who Must Comply with OFAC Regulations?
OFAC addresses matters like terrorism threats, international drug smuggling, and other topics that might seem irrelevant to the average organization engaging in legitimate international business. However, it’s a mistake to underestimate how OFAC laws apply to your business.
OFAC requirements apply to all US persons, including US companies, US citizens, and lawful permanent residents. OFAC issues often arise in the context of a business that:
- Deals with a person, entity, or country on a OFAC’s sanctions list;
- Experiences customer base changes after an acquisition or merger;
- Does a significant amount of overseas business;
- Works with products or services related to the electronics industry;
If you are engaged in any type of foreign trade or economic exchange, your company is subject to OFAC’s authority — and also OFAC noncompliance penalties. If your organization falls under OFAC regulatory administration, you must have a strong internal compliance program in place to prevent the costly effects of an OFAC violation, and to reduce penalties in the event of a violation.
OFAC Penalties & Violations of Sanctions Programs
OFAC violations are not taken lightly by the U.S. Department of the Treasury or the Department of Justice. The two primary forms of OFAC enforcement actions are monetary fines and criminal sentencing for the individuals responsible for the violations.
Even when a violation of OFAC restrictions involves a minor transaction, fines can be levied for many times the value of the original violation. OFAC doesn’t issue fines as restitution for a violation but rather as a form of deterrence. This means that even a small error can bring costly consequences.
OFAC fines can reach millions of dollars per violation, while sentencing can bring prison terms of up to 30 years for the offending individuals. Some cases involving multiple violations have seen businesses hit with aggregate fines of over $1 billion. OFAC may refer a case to the Department of Justice under certain circumstances.
OFAC Embargoed & Sanctioned Foreign Countries
OFAC maintains a list of targeted countries impacted by sanctions under the authority of the United States government. The OFAC countries are targeted because of concerns over national security. Organizations engaged in trade with certain countries subject to heightened OFAC sanctions must operate with caution and ongoing vigilance to avoid serious OFAC enforcement penalties.
Countries Subject to Heightened OFAC Sanctions Include but are not Limited to:
- Cuba
- Somalia
- Iran
- South Sudan
- Libya
- Syria
- Myanmar
- Ukraine
- North Korea
- Venezuela
- Russia
- Zimbabwe
Remember that OFAC sanctions lists could change at any moment. Remember also that it is not only nations that are subject to sanctions but also certain individual citizens, regimes, and companies and organizations identified by OFAC. These sanctions may apply to your company as well, by preventing you from doing business with any of these parties.
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