OFAC Voluntary Self-Disclosure

This is the next in the series of publications launched by GK Advisory, addressed to corporate counsels and compliance officers focused on practical solutions to real world issues of anti-bribery, anti-money laundering, and sanctions compliance.

Topics covered will be drawn from GK Advisory’s experience in advising its client base as well as the practice of the Concilium Network member firms. GK Advisory is an Israeli member of the Concilium Network.

OFAC Voluntary Self-Disclosure

Question: What should my company do if it became aware of a possible inadvertent sanctions violation (for example, if it holds property of or conducts business with a sanctioned entity or individual)?

Answer: The US Office of Foreign Assets Control (“OFAC”), a primary US entity administering and enforcing economic and trade sanctions, encourages anyone who may have violated OFAC sanctions programs, to disclose any potential violation. ?Such voluntary self-disclosure is considered a mitigating factor in enforcement actions and will result in reduction of any proposed civil penalty, should it be concluded that there was indeed a violation of sanctions.?

?

If a company, after consultation with its legal counsel, has sufficient grounds to believe it might have been involved in sanctions violation, a voluntary self-disclosure to OFAC should include an initial notification of a potential violation, followed by a report containing significant detail that would allow OFAC to understand the circumstances of a violation. ?

?

The initial notification should be submitted promptly after discovery of the violation (and should be done before any governmental authority or a financial institution discovers it, in order to qualify as a mitigating factor). ?It should include information about the disclosing party, brief description of facts surrounding the suspected violations and a request for certain amount of time to provide supplemental narrative.

?

OFAC would generally expect a follow-up report to be submitted within 180 days after the initial notification. ?Such report should include further details of the suspected violations and analysis of how the transactions at issue may have violated sanctions laws.

?

OFAC, after considering the information provided, may respond with a “no action” letter, request for additional information, cautionary letter, finding of a violation, civil monetary penalty, or a criminal referral, depending on its findings. ?Properly filed voluntary self-disclosure would typically result in mitigation benefits.

Your comments and suggestions about any aspect of our publications are welcome, so do not hesitate to reach out to us and submit issues for discussion that are relevant to your day-to-day operations. If you have colleagues or acquaintances who may be interested in practical aspects of ABC/AML/sanctions compliance best practices, please do share our updates with them.

*The contents of this message, current at the date of publication, are for reference and general informational purposes only and do not constitute legal advice.? You should contact your attorney to obtain advice with respect to any particular legal matter. ?You should not act or refrain from acting on the basis of information in this publication without first seeking legal advice from counsel in the relevant jurisdiction. ?Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.

hashtag#antibribery hashtag#antimoneylaundering hashtag#sanctions hashtag#compliance hashtag#abc hashtag#aml hashtag#amlcompliance hashtag#amlcompliance#whistleblower

?