Sanction Lawyers ≡ OFAC Sanctions Lawyers ≡ OFAC Enforcement

OFAC Enforcement

OFAC enforcement lawyers play a vital role in assisting businesses and individuals in navigating the complex landscape of U.S. economic sanctions programs. The Office of Foreign Assets Control (OFAC) administers and enforces these sanctions, and their enforcement actions aim to ensure compliance while protecting U.S. national security and foreign policy interests. With the potential for substantial penalties, it is crucial to engage the services of experienced OFAC enforcement lawyers.

These specialized lawyers help clients proactively address potential sanctions violations and mitigate risks associated with enforcement actions. By conducting thorough internal investigations, OFAC enforcement lawyers can identify potential compliance issues and recommend appropriate remedial actions. This process is essential for minimizing the risk of penalties and ensuring that organizations take potential violations seriously.

Our OFAC Enforcement Lawyers have recently represented clients in the following OFAC enforcement cases:

Representation of a foreign financial institution in OFAC investigations into evident violations of sanctions programs. Several of these investigations were concluded with Cautionary Letters.
Freight forwarders are represented in OFAC investigations into evident violations of the Iranian Transactions and Sanctions Regulations. Several of these investigations were concluded with Cautionary Letters.
Representation of a web design firm in an OFAC investigation into apparent violations of the Iranian Transactions and Sanctions Regulations.
Representation of a social media corporation during an OFAC investigation into alleged violations of the Iranian Transactions and Sanctions Regulations. The case resulted in the issuance of a Cautionary Letter.
Representation of a U.S. citizen who owned and operated a distribution corporation for medical devices in Iran. Case resulted in the issuance of a Cautionary Letter.
Representation of numerous U.S. businesses with employees in Iran. All were accompanied by Cautionary Letters.
Representation of U.S. citizens under investigation for violating Russia sanctions due to their provision of services to Crimea. Resulted in the issuance of a Cautionary Letter.
Representation of a U.S. bank in an OFAC investigation and response to an administrative subpoena for alleged violations of Ukraine-related Russia sanctions. Case resulted in the issuance of a Cautionary (Warning) Letter.
Representation of a U.S. company with Iranian shareholders. Case resulted in the issuance of a Cautionary Letter.

In the event of a potential sanctions violation, OFAC enforcement lawyers can guide clients through the process of preparing and submitting voluntary self-disclosures to OFAC. By doing so, they may secure reduced penalties or other favorable outcomes for their clients. Additionally, these lawyers can represent clients in negotiations with OFAC during the settlement process or defend against administrative proceedings initiated by the agency.

OFAC enforcement lawyers possess a deep understanding of the various factors that can influence the outcome of an enforcement action, such as the severity of the infraction, the presence of mitigating or aggravating factors, and the extent of the violator’s cooperation during the investigation. Armed with this knowledge, they can devise effective strategies to protect their client’s interests and secure the best possible outcome in enforcement actions.

In conclusion, OFAC enforcement lawyers provide essential legal representation and guidance to businesses and individuals navigating the enforcement process under U.S. economic sanctions programs. By helping clients address potential violations, manage risks, and protect their interests, these lawyers play a critical role in ensuring compliance with the complex web of sanctions laws and regulations.

OFAC enforcement actions crypto

The Office of Foreign Assets Control (“OFAC”) of the U.S. Treasury Department announced a settlement with a multi-asset trading platform that incorporates digital assets on March 31, 2023. The trading platform consented to pay $72,230 to settle its prospective civil liability for violations of OFAC sanctions against Iran, Cuba, and Venezuela.

According to OFAC, the trading platform failed to properly screen customers during its onboarding process for sanctions compliance and, as a result, processed transactions for customers located in Iran, Cuba, and Venezuela, in violation of OFAC sanctions. Customers were able to circumvent account opening screening procedures by selecting a non-sanctioned country from a drop-down menu and providing a separate location within a sanctioned country in a free-text address field that was not screened for sanctions compliance. Occasionally, consumers provided identification documents from a sanctioned nation, but the platform did not screen or notify those documents. OFAC stated that the trading platform “failed to exercise due caution or care when it onboarded or conducted due diligence on customers” and “implemented inadequate screening and other compliance processes.” OFAC’s announcement also stated that despite the fact that the maximum statutory civil monetary penalty applicable to the case was $44 million, the platform faced a significantly lower penalty because it voluntarily self-reported the violations, cooperated with OFAC’s investigation, and implemented significant remedial measures.

OFAC has intensified its focus on the cryptocurrency industry in recent years, declaring settlements with digital asset companies and sanctioning a cryptocurrency mixer. The Office of Foreign Assets Control (OFAC) published sanctions compliance guidance for the cryptocurrency industry in 2021, noting that the increasing prevalence of cryptocurrencies as a payment method increases sanctions risks.

OFAC is educating the crypto industry about its compliance requirements through its actions. The specific deficiencies emphasized by OFAC in this instance, such as the failure to screen all induction materials, should be noted by crypto companies. In addition, other compliance initiatives, such as employee training, should supplement automated screening solutions. Companies that provide money exchange services should conduct a risk assessment and employ a holistic approach to managing compliance risks that is reflective of their particular business systems, tools, and processes.

OFAC Enforcement FAQ

What is the role of OFAC enforcement in ensuring compliance with U.S. economic sanctions?

OFAC enforcement ensures compliance with U.S. economic sanctions by monitoring, investigating, and penalizing violations committed by businesses and individuals. It aims to maintain the integrity of the sanctions programs and protect U.S. national security and foreign policy interests.

How can OFAC enforcement lawyers help businesses and individuals navigate the complex landscape of sanctions enforcement actions?

OFAC enforcement lawyers can help businesses and individuals by providing expert legal guidance, representing clients during settlement negotiations or administrative proceedings, assisting with internal investigations, and advising on remedial actions to mitigate the risk of penalties.

What are the potential penalties for violations of U.S. economic sanctions, and how can an OFAC enforcement lawyer help mitigate these risks?

Penalties for violations of U.S. economic sanctions can be substantial, including civil and criminal fines, asset freezes, and reputational damage. An OFAC enforcement lawyer can help mitigate these risks by ensuring compliance, conducting thorough internal investigations, and representing clients in enforcement actions.

How can OFAC enforcement lawyers assist with internal investigations and remedial actions in the event of potential sanctions violations?

OFAC enforcement lawyers can help by conducting comprehensive internal investigations to identify potential violations, recommending appropriate remedial actions, and guiding clients through the process of implementing necessary changes to ensure compliance with sanctions laws.

What is the process for preparing and submitting voluntary self-disclosures to OFAC, and how can an enforcement lawyer help with this process?

The process for preparing and submitting voluntary self-disclosures involves identifying potential violations, gathering relevant documentation, and providing a detailed narrative of the circumstances surrounding the violation. An OFAC enforcement lawyer can help by guiding clients through this process, ensuring the disclosure is complete and accurate, and representing the client's interests during any subsequent enforcement actions.