On May 2nd, OFAC released it's updated framework for sanctions compliance. In addition to being relatively prescriptive, it notes an increased focused on holding individuals liable for violating OFAC sanctions.
"In several instances, individual employees—particularly in supervisory, managerial or executive-level positions—have played integral roles in causing or facilitating violations of the regulations administered by OFAC. Specifically, OFAC has identified scenarios involving U.S.- owned or controlled entities operating outside of the United States, in which supervisory, managerial or executive employees of the entities conducted or facilitated dealings or transactions with OFAC-sanctioned persons, regions, or countries, notwithstanding the fact that the U.S. entity had a fulsome sanctions compliance program in place.
In some of these cases, the employees of the foreign entities also made efforts to obfuscate and conceal their activities from others within the corporate organization, including compliance personnel, as well as from regulators or law enforcement. In such circumstances, OFAC will consider using its enforcement authorities not only against the violating entities, but against the individuals as well.”
Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) is publishing A Framework for OFAC Compliance Commitments in order to provide organizations subject to U.S. jurisdiction, as well as foreign entities that conduct business in or with the United States or U.S. persons, or that use U.S.-origin goods or services, with OFAC’s perspective on the essential components of a sanctions compliance program. “As the United States continues to enhance our sanctions programs, ensuring that the private sector implements strong and effective compliance programs that protect the U.S. financial system from abuse is a key part of our strategy,” said Sigal P. Mandelker, Under Secretary for Terrorism and Financial Intelligence.
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