13. How can I report a possible violation of U.S. sanctions to OFAC? Will I receive "amnesty" if I report a possible violation to OFAC or if my failure to comply with U.S. sanctions was inadvertent?
OFAC encourages anyone who may have violated OFAC-administered sanctions programs, or anyone who is aware of potential violations, to disclose the apparent or potential violation to OFAC. Voluntary self-disclosure to OFAC is considered a mitigating factor by OFAC in enforcement actions, and pursuant to OFAC’s Economic Sanctions Enforcement Guidelines, will result in a reduction in the base amount of any proposed civil penalty.
Please submit all voluntary self-disclosures electronically to [email protected]. OFAC’s Economic Sanctions Enforcement Guidelines explain what constitutes a voluntary self-disclosure for purposes of receiving mitigation. Among other factors, the guidelines state that in addition to notification of an apparent violation, a voluntary self-disclosure must include, or be followed within a reasonable period of time by, a report of sufficient detail to afford OFAC a complete understanding of an apparent violation’s circumstances. When such a report is not included with an initial notification, OFAC will generally expect such a report within 180 days after the initial notification.
Please review OFAC’s Production Submission Standards, which detail OFAC’s preferred technical standards for formatting electronic document productions.
OFAC does not have an "amnesty" program. OFAC does, however, review the totality of the circumstances surrounding any apparent violation, including whether a matter was voluntarily self-disclosed to OFAC. Such disclosure may also support credit for cooperation. OFAC will also consider the existence, nature, and adequacy of a subject person’s risk-based OFAC compliance program at the time of the apparent violation. Please see OFAC’s Economic Sanctions Enforcement Guidelines and OFAC’s Framework for OFAC Compliance Commitments for additional information regarding voluntary self-disclosures and other mitigating factors, as well as OFAC’s general framework for the enforcement of its sanctions programs. For more information on OFAC’s enforcement process and self-disclosing violations, please see the Civil Penalties and Enforcement Information page on OFAC’s website.
Other U.S. government agencies, including the U.S. Department of Justice (DOJ) and the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) have their own disclosure procedures for voluntarily self-disclosing violations of U.S. sanctions and export control laws. Moreover, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) maintains a whistleblower incentive program for violations of OFAC-administered sanctions, in addition to violations of the Bank Secrecy Act. Individuals located in the United States or abroad who provide information may be eligible for awards, if the information they provide leads to a successful enforcement action that results in monetary penalties exceeding $1,000,000.
Date Updated: August 21, 2024.
Updated on Aug 21, 2024
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13. Is there a mechanism for a company to report its past undetected violations of OFAC regulations for completed transactions? Is any type of "amnesty" available for inadvertent failure to comply prior to the company becoming aware of the OFAC regulations?
Yes, a company can and is encouraged to voluntarily disclose a past violation. Self-disclosure is considered a mitigating factor by OFAC in Civil Penalty proceedings. A self-disclosure should be in the form of a detailed letter, with any supporting documentation, to Compliance and Enforcement Division, Director, Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Ave., N.W., Washington, DC 20220. OFAC does not have an "amnesty" program. The ramifications of non-compliance, inadvertent or otherwise, can jeopardize critical foreign policy and national security goals. OFAC does, however, review the totality of the circumstances surrounding any violation, including the quality of a company's OFAC compliance program. [11-16-07]
1) FAQ amended on 8-21-24 concurrent with Modernizing Treasury’s Office of Foreign Assets Control (Press Release), detailing several modernization efforts, including the updating of a number of general interest FAQs containing dated language. This FAQ does not appear to provide guidance in a way that adds to or deviates from OFAC’s other modern guidance. Refer to the guidance referred to in the FAQ. The comments below were drafted (not amended) prior to the 8-21-24 amendment.
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Notes:
1) See also the BIS and DOJ guidance and instructions on voluntary disclosures for export control violations:
a) https://www.bis.doc.gov/index.php/enforcement/oee/voluntary-self-disclosure
b) https://www.justice.gov/nsd/file/902491/download
2) Refer to the Civil Enforcement Action search module for penalties sorted by amount of fine, whether a voluntary disclosure was made/credit given in that connection. The befits of such disclosures can vary according to the circumstances.