Similarly, breaking the Foreign Narcotics Kingpin Designation Act costs about $1.5 million per violation. Violating the International Emergency Economic Powers Acts come with penalties of about $308,000 per violation. As a result, criminal offenders face monetary fines-ranging from a few thousand dollars to several million-and prison time up to 30 years.Īs of 2020, parties that break the Trading with the Enemy Act, for instance, face fines of about $90,000 per violation. OFAC treats violations as a serious threat to national security and foreign relations. persons or entities are prohibited from engaging in trade or financial transactions with sanctioned parties however, OFAC will grant exemptions under certain circumstances. Some lists found in the CSL include the Sectoral Sanctions Identification List (SSI), the Non-SDN Iranian Sanctions Act (NS-ISA), and the Foreign Sanctions Evaders List (FSE), amongst more.įinancial institutions and banks will often canvass the OFAC Sanctions lists in their anti-money laundering programs. sanctions, and the Consolidated Sanction Lists (CSL), which contain details about restricted parties not covered by the SDN list.

The two main types of sanctions lists maintained by OFAC are the Specially Designated Nationals (SDN) list, a list of individuals and companies in countries targeted by U.S. There’s a duty to know the end-to-end provenance of all goods and services in a transaction and avoid any deals that have sanctions implications, and recent enforcement actions highlight the duty to know the entire transaction chain.

Companies that deal with foreign entities must learn the ins and outs of the sanction lists to avoid a harsh penalty. Treasury Departments’ Office of Foreign Assets Control ( OFAC) administers and enforces these sanctions across various target groups. policymakers, economic sanctions have become a standard tool in deterring criminal activity. As the world’s largest economy, the United States’ stance against financial crime, including money laundering and terrorist financing, sets the tone for actions in other countries.

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