The US Treasury Department’s Office of Foreign
Assets Control (OFAC) has issued guidance on how it evaluates
sanctions compliance programmes that lays out how companies can
ensure they do not breach its rules.
OFAC has outlined a number of 'root causes' it suggests have
led to apparent violations of its sanctions programmes. In the
past OFAC has put out limited guidance on such programmes
– so this would appear to be what the agency considers
a robust compliance framework.
The agency has formalised policy already in place,
suggesting that these violations often stem from a
misinterpretation or misunderstanding of existing
"OFAC has been talking for some time in
the context of individual enforcement actions
about what causes concern and what leads it to
bring actions and seek penalties," said Doug Davison, partner
Linklaters in Washington DC.
"It really helps clients understand. Does this apply to