Violations of OFAC Sanctions: What Are the Consequences?
The United States sanctions are created, implemented, and enforced by the Office of Foreign Assets Control (OFAC). OFAC sanctions and accompanying requirements must be followed by all parties subject to US jurisdiction. OFAC can provide exemptions from sanction orders, but only under limited situations. You must contact the Treasury Department if you or your firm desires to get an exemption license. You can also apply for specific exemption licences online.
Penalties for Violations of OFAC Sanctions
Noncompliance with sanctions, according to OFAC, is a severe danger to national security and foreign relations. As a result, anyone who violates OFAC sanctions without first acquiring the required licence may face serious legal consequences. Depending on the crime, fines might reach $20 million, and prison sentences can last up to 30 years.
If a party breaches the Trading with the Enemy Act while breaking a punishment, it may be fined $65,000 per infringement. The penalties for violating the International Emergency Economic Powers Act rises to $250,000 for each offence. Breaking the Foreign Narcotics Kingpin Designation Act, on the other hand, can result in fines of up to $1,075,000 per infraction.
Understandably, these figures fluctuate a lot depending on the type of crime committed and how many times it happened. The terms of these sanctions vary regularly, so being up to date is critical. This will guarantee that you are both compliant and do not limit your company activities needlessly by adhering to penalties that have been repealed.
Dealing With OFAC Sanctions
Given the severity of the sanctions, it’s reasonable that many businesses and people are anxious about unwittingly breaking a sanction policy.
Despite the fact that OFAC does not have an official amnesty programme, the Treasury Department actively encourages institutions to report any prior illegal activities. Companies are also encouraged to contact OFAC if they are unsure if a policy breaches OFAC’s existing requirements. Past infractions should be reported in the form of a clear, complete letter that includes copies of all relevant information. Because there is no official amnesty programme, notifying OFAC of infractions does not ensure clemency, but it can lower the likelihood of prosecution and the severity of legal and financial consequences. When OFAC investigates cases, it recognises that honest mistakes arise.
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