US Enforcement
If OFAC finds a sanctions breach, OFAC will issue civil monetary penalties, a cautionary letter, a finding of a violation, or other administrative action e.g. a licence denial or a cease and desist order. Most cases with announced civil penalties are resolved by settlement.
The Department of Justice enforces criminal US sanctions violations, sometimes, but not always, on referral from OFAC. Penalties, as determined by the courts, may include imprisonment, forfeiture of funds or other assets, and fines. The DOJ’s Corporate Whistleblower Awards Pilot Program also covers corporate sanctions violations. Under the programme, whistle-blowers who provide the DOJ Criminal Division with information about corporate misconduct that results in asset forfeiture may be eligible for an award.
FinCEN (the Financial Crimes Enforcement Network) is responsible for countering money laundering and terrorist financing, so its authorities overlap with OFAC-administered regulations. Financial regulators, such as the New York State Department of Financial Services and the Federal Reserve Board, may impose fines and other penalties for compliance failures associated with insufficient sanctions compliance programmes.
BIS has similar administrative responses to OFAC for violations of the Export Administration Regulations (EAR), including issuance of civil penalties, a warning letter, no action letter, or criminal referral to the Department of Justice. Violations of the EAR can also lead to training and auditing requirements, license revision or revocation, Temporary Denial Orders (TDOs) to deny export privileges, or other administrative actions. TDOs may be renewed indefinitely. The Directorate of Defence Trade Controls (DDTC) has the authority to enforce monetary penalties for violations of the International Traffic in Arms Regulations (ITAR), and can statutorily debar persons from engaging in ITAR-regulated activities. The Department of Justice also enforces criminal violations of the EAR and ITAR. Criminal penalties for violating the EAR and ITAR may include imprisonment, forfeiture of funds or other assets, and fines.
Legislation
OFAC Reporting, Procedures and Penalties Regulations (31 CFR Part 501)
Enforcement Actions / Settlements
Consolidated List of OFAC Enforcements
Selected OFAC Settlement Agreements from 2023 to 2009
Consolidated List of BIS Export Violations
DDTC Penalties and Oversight Agreements
Guidance on OFAC’s Enforcement and Compliance Policies
A Framework for OFAC Compliance Commitments
OFAC Enforcement Guidelines
Memoranda of Understanding Between OFAC and Bank Regulators
Memorandum of Understanding Between OFAC and the State of Delaware Department of Justice
OFAC Office of Compliance and Enforcement Data Delivery Standards Guidance: Preferred Practices for Productions to OFAC
Advisory and Guidance on Potential Sanctions Risks Arising from Dealings in High-Value Artwork
Sanctions Compliance Guidance for the Virtual Currency Industry
Sanctions Compliance Guidance for Instant Payment Systems
Guidance on Charging and Penalty Determinations in Settlement of Administrative Enforcement Cases
Myths and Facts about U.S. Defense Export Controls
Department of Commerce, Department of the Treasury, and Department of Justice Tri-Seal Compliance Note: Voluntary Self-Disclosure of Potential Violations
Department of Justice Voluntary Self-Disclosure Policy