Pre-penalty Notice - Anonymous Company (1)

Ed. Note: if you’re new to TURBOFAC, please take note that the text string filtration function generally shouldn’t be used for terms such as “ordinarily resident,” “causing” or “new debt”. For research on the meaning of words and phrases such as those, i.e. terms central to the key legal issues in sanctions law that appear on a cross-programmatic basis, you’re typically better off locating and checking the appropriate box in the “Key Legal Issues” search category, which will limit the results to those that have been manually assessed as being relevant for the interpretation of the terms at issue.

Try typing your search term (“ordinarily resident,” “new debt,” or something else) in the “Find a Search Filter” box at the top of the page, and the corresponding “Key Legal Issues” check box will pop up instantly, if one exists. Once you check the box (e.g. “new debt,” with ~55 results), you can always use the text string filtration function to further refine your search (e.g. by typing “invoice” and narrowing the ~55 results to ~10).

Note in addition that the same applies to text string searches such as “14071” (if you’re looking for items related to EO 14071). By typing “14071” in the “Find a Search Filter” field up top, you will be able to instantly narrow the results down to items manually assessed as relating to EO 14071. Ditto terms such as “515.204” or “Iran General License G” (try the “Discrete Legal Provision” search category). Please contact [email protected] or [email protected] with any questions on search results and efficiency.

Please click "Apply Text String Filters" again after clicking the "Close" button immediately below.

TURBOFAC Commentary (319 words)

Notes:

1) Since OFAC began publicly releasing penalty notices and enforcement information extracts, it has characterized violations merely as "apparent violations," or otherwise declared violations to have occurred without articulating what evidentiary standard it applies.

This pre-penalty notice explicitly articulates the "reasonable cause to believe" standard, which, around the same time as the notice was issued, OFAC characterized as derived from its obligations not to act arbitrarily and capriciously under the .[1]

In 2017, then-Director John E. Smith confirmed in a House hearing [2] that the standard was used by OFAC in both enforcement actions as well as for designations and characterized the standard as being even lower than the "more likely than not" preponderance of the evidence standard.

But see Epsilon Electronics, Inc. v. U.S. Dep't of the...

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Pre-penalty Notice - Anonymous Company (1)

TURBOFAC Commentary (319 words)