Do you or does your company engage in transactions with foreign companies or individuals? Do you have business or financial relationships with any kind of foreign entity that exists within a country or region that is on a Federal watch list?

The Office of Foreign Assets Control (OFAC) may be more important to you than you think. It is often cited as one of the most powerful Federal agencies most people have never heard of. To illustrate its power, OFAC settled for a $1 billion fine on BNP Paribas in June 2014 for money laundering on behalf of Sudan and other entities, part of a whopping $9 billion penalty in total.

OFAC is a U.S. Department of the Treasury agency that enforces trade and economic sanctions in support of U.S. foreign policy and national security. Its emphasis is on anti-money laundering actions against both state and non-state actors to combat foreign terrorism, drug trafficking, arms dealing, and other threats to national security. Its broad mandate as part of national security policy and very potent powers make it important for you to know how to cope with the sanctions risks it poses. … Continue reading