The cryptocurrency industry has a target on its back – and perhaps justifiably so. The SEC, CFTC and OFAC have been bringing a number of regulatory enforcement actions, including against Bittrex, Inc. ($24,280,829.20 in...more
The Justice Department warned companies that sanctions enforcement is the “new FCPA.” DOJ just delivered its first salvo to back up its message....more
5/2/2023
/ Criminal Prosecution ,
Deferred Prosecution Agreements ,
Department of Justice (DOJ) ,
Economic Sanctions ,
Enforcement Actions ,
Foreign Relations ,
Foreign Trade Regulations ,
North Korea ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
Settlement Agreements
Uphold is a California-based money service business. Uphold agreed to pay OFAC $72,230 to resolve multiple sanctions program violations....more
4/13/2023
/ Compliance ,
Cuba ,
Economic Sanctions ,
Enforcement Actions ,
Financial Institutions ,
Iran ,
Iran Sanctions ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
Screening Procedures ,
Venezuela
Microsoft’s remedial steps provide important best-practices for companies facing similar risk factors in the global economy, especially for global software companies that rely on Internet-based operations....more
4/12/2023
/ Anti-Corruption ,
Best Practices ,
Blocked Person ,
Corporate Misconduct ,
Corruption ,
Economic Sanctions ,
Enforcement Actions ,
Microsoft ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
SDN List ,
Settlement Agreements ,
Software ,
US Trade Policies
OFAC announced only one settlement in the first three months of 2023. Given its ongoing role in the implementation and enforcement of Russia Sanctions, OFAC’s enforcement record so far is completely understandable. The...more
4/11/2023
/ Anti-Corruption ,
Bureau of Industry and Security (BIS) ,
Corruption ,
Economic Sanctions ,
Export Controls ,
Exports ,
Fines ,
Microsoft ,
Office of Foreign Assets Control (OFAC) ,
Sanction Violations ,
SDN List ,
Settlement Agreements ,
Software
Not that I am a glutton for punishment, but I always find enforcement actions to supply a number of valuable lessons learned. There are always instructive nuggets of information, opportunities missed, and root causes that...more
4/5/2023
/ Banks ,
Compliance ,
Corporate Culture ,
Corporate Misconduct ,
Economic Sanctions ,
Enforcement Actions ,
Ethics ,
Financial Transactions ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Sanction Violations ,
Wachovia ,
Wells Fargo
In our lifetime (however long or short), there is no way any company will ever match Wells Fargo for its record of misconduct, criminal and civil enforcement, and regulatory fines and penalties. No one, no way....more
OFAC had a quiet start to the year – no enforcement actions but plenty of new and revised sanctions against Russia. OFAC started off March 2023 with a new enforcement action against Godfrey Phillips India, a tobacco...more
As we have noted on numerous occasions, the U.S. Russia Sanctions and Export Control Program is unprecedented and a compliance challenge for all organizations. In another unprecedented action, the Justice Department and the...more
3/14/2023
/ Anti-Corruption ,
Bureau of Industry and Security (BIS) ,
Compliance ,
Department of Justice (DOJ) ,
Economic Sanctions ,
Export Controls ,
Goods or Services ,
Military Conflict ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
Sanction Violations ,
SDN List ,
U.S. Commerce Department ,
U.S. Treasury ,
Ukraine
On February 24, 2023—the first anniversary of the Russian Federation’s Ukraine incursion—the United States Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) and the Department of Commerce’s Bureau of...more
3/2/2023
/ Blocked Person ,
Bureau of Industry and Security (BIS) ,
Economic Sanctions ,
Financial Institutions ,
Foreign Trade Regulations ,
General Licenses ,
Metals ,
Military Conflict ,
Mining ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
SDN List ,
Ukraine
I am sticking with my 2023 prediction – DOJ is committed to aggressive enforcement of the Russia sanctions. Most of its efforts to date have been directed against Russian Oligarchs and significant evaders who are moving...more
3/1/2023
/ Civil Forfeiture ,
Corruption ,
Criminal Prosecution ,
Department of Justice (DOJ) ,
Economic Sanctions ,
Enforcement Actions ,
Foreign Policy ,
Indictments ,
Military Conflict ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
Sanction Violations ,
SDN List ,
Ukraine ,
White Collar Crimes
Trade compliance is the new hot field. Companies are catching up with trade compliance in response to the global sanctions regimes put in place to cripple Russia. The United States, its allies and partners have implemented...more
1/24/2023
/ Anti-Corruption ,
Department of Justice (DOJ) ,
Economic Sanctions ,
Enforcement Actions ,
Foreign Corrupt Practices Act (FCPA) ,
Military Conflict ,
Office of Foreign Assets Control (OFAC) ,
Russia ,
Trade Relations ,
Ukraine ,
US Trade Policies
OFAC closed out 2022 with a late-night $4.3 million settlement with Danfoss A/S, a Danish manufacturer of refrigeration and cooling products for violations of the Iran, Syria and Sudan sanctions programs. OFAC has had a...more
OFAC’s guidance is intended to ease the burden on an otherwise difficult compliance problem. Companies have to act in good faith to avoid transacting business involving Russian crude oil that has been sold above the $60 per...more
12/16/2022
/ Attestation Requirements ,
Compliance ,
Crude Oil ,
Foreign Policy ,
Infrastructure ,
Maritime Transport ,
Military Conflict ,
Office of Foreign Assets Control (OFAC) ,
Oil & Gas ,
Oil Prices ,
Regulatory Requirements ,
Russia ,
Ukraine
The Biden Administration recognizes that the Russian Price-Cap Policy imposes serious burdens on U.S. energy companies and industries that provide ancillary services to the energy sector. It is even more complicated given...more
While OFAC is not always known for its clarity, the department is trying to make it easier for participants in global oil markets to comply with the Price-Cap Policy against Russian oil. This is not an easy task since there...more
The G-7, the European Union and Australia officially announced a price cap on Russian oil, which includes service and shipping restrictions on oil originating from the Russian Federation and trading above $60 per barrel. ...more
12/13/2022
/ Australia ,
Crude Oil ,
EU ,
Foreign Trade Regulations ,
Infrastructure ,
Military Conflict ,
Office of Foreign Assets Control (OFAC) ,
Oil & Gas ,
Oil Prices ,
Russia ,
Shipping ,
Ukraine
Cryptocurrency companies are in trouble. Regulators are bearing down on crypto companies with the Eye of Sauron – pulling the crypto companies into their jurisdiction, prosecuting fraud cases, and aggressively prosecuting...more
12/9/2022
/ Corruption ,
Crypto Exchanges ,
Economic Sanctions ,
Enforcement Actions ,
Financial Transactions ,
Iran ,
Iran Sanctions ,
Office of Foreign Assets Control (OFAC) ,
Popular ,
Sanction Violations ,
Virtual Currency
The Department of Justice is pushing its commitment to voluntary disclosure programs. Companies, however, are not lining up at DOJ’s door. The balance between sitting tight or voluntary disclosures requires care....more
The Department of Treasury’s Office of Foreign Assets Control (“OFAC”) issued a finding of violation (“FoV”) to Nodus International Bank, Inc. (“Nodus”), located in Puerto Rico, for violation of Venezuelan Sanctions. Nordus...more
On October 11, 2022, the Office of Foreign Assets Control (“OFAC”) and the Financial Crimes Enforcement Network (“FinCEN”) announced settlement agreements with Bittrex, Inc. (“Bittrex”), a cryptocurrency exchange based in...more
On September 30, 2022, the United States Department of the Treasury’s Office of Foreign Asset Control (“OFAC”) announced a settlement with Tango Card, Inc. (“Tango Card”), a supplier and distributor of stored valued...more
The Office of Foreign Assets Control (“OFAC”) has demonstrated its ability to multi-task — designing, implementing and enforcing a comprehensive sanctions regime against Russia after its invasion of Ukraine, and maintaining...more
On September 9, 2022, the United States Department of the Treasury’s Office of Foreign Asset Control (“OFAC”) released “Preliminary Guidance” concerning a ban on maritime transportation services involving Russian Federation...more
Some may dismiss OFAC’s recent announcement last week that it issued a Finding of Violation to MidFirst Bank for violations of the Weapons of Mass Destruction Proliferators sanctions regulations as insignificant because OFAC...more