Reported by Nick Oberheiden

Financial institutions and companies that are subject to oversight from the Office of Foreign Assets Control (OFAC) need to prioritize compliance. OFAC has become increasingly active in recent years, and it is devoting substantial government resources to identifying illicit activity and pursuing enforcement action against institutions and companies that engage in (or facilitate) prohibited financial transactions, working to protect national security and foreign policy interests.

So, what does it take to maintain OFACcompliance in 2023? Effectively managing OFAC compliance requires a strategic and multi-faceted approach. There are numerous aspects to Office of Foreign Assets Control compliance; and, while OFAC has published several compliance resources, it has also made clear that these resources are intended to be instructive rather than exclusive. As a result, financial institutions and companies must independently assess their compliance obligations in light of their customer base, transactions, corporate structure, operations, and all other pertinent considerations, and they must implement custom-tailored compliance programs that focus specifically on their unique risks and needs regarding OFAC regulations.

“As the global economy continues to expand and new technologies make it easier to execute cross-border transactions, financial institutions and companies in the U.S. are increasingly facing new and complex compliance challenges. This is particularly true in the area of OFAC compliance, where institutions and companies must carefully address a wide range of statutory and regulatory obligations in a landscape that is shifting constantly.” – Dr. Nick Oberheiden, Founding Attorney of Oberheiden P.C.

For both financial institutions and companies, the risks of non-compliance can be substantial. OFAC regulations compliance failures can lead to OFAC blocking transactions and assets, and they can lead to civil or criminal enforcement action in some cases.

5 Keys to OFAC Compliance in 2023

Among all areas of statutory and regulatory compliance, OFAC compliance is one of the most unique. Financial institutions and companies that are subject to OFAC’s oversight face unique compliance obligations, and they must often address these obligations in unique circumstances. With this in mind, here are seven keys to developing and implementing an effective OFAC compliance program in 2023 (read full report: https://www.jdsupra.com/legalnews/ofac-compliance-developing-and-8313025/).