Five months after Sigal Mandelker, Under Secretary of the US Treasury for Terrorism and Financial Intelligence, presented five of the hallmarks of an effective sanctions compliance program, the Office of Foreign Assets Control (OFAC) has finally published long-awaited guidance for national and international organizations subject to its regulation (the Framework). OFAC is the organization responsible for administering and enforcing US economic and trade sanctions programs, and its inaugural “Framework for OFAC Compliance Commitments” will likely be incorporated into compliance programs for entities worldwide.
The Framework is the most detailed statement to date of OFAC’s views on sanctions compliance best practices. It articulates guidance on the essential components of a sanctions compliance program and describes how OFAC may evaluate these components in resolving investigations and determining the amount of any penalties. The document also includes a brief root cause analysis of some frequent violations of US economic and trade sanctions laws.