OFAC Sanctions and Corporate Compliance: Practical Tips and Strategies to Avoid Risks and Pitfalls
In May 2019, the US Treasury Department’s Office of Foreign Assets Control (OFAC) published a framework for OFAC compliance. The core elements of the guidance are aimed at creating a tailored risk-based strategy to ensure sanctions compliance across an organization. It also outlines five components of a compliance program and it includes an appendix identifying the root causes of compliance breakdowns and deficiencies. To mitigate risks, it is imperative for companies to assess the adequacy of their OFAC compliance programs and to tailor them to target risks relevant to the business.
In this LIVE Webcast, a seasoned panel of thought leaders and professionals brought together by The Knowledge Group will present an in-depth analysis of the fundamentals as well as recent developments in OFAC sanctions. Speakers will also present compliance practices and strategies to minimize compliance issues and prevent sanctions violations from occurring. The panel will also address the impact of a designation as a Specially Designated National (“SDN”).
Key topics include:
- OFAC’s Framework for Compliance Commitments – Overview
- OFAC’s Five Components for Sanctions Compliance Programs
- Common Causes of Sanctions Compliance Program Breakdowns and Deficiencies
- Focus on Recent Enforcement Actions
- SDN Designations
- What Lies Ahead
Vinson & Elkins LLP
Introduction to the Office of Foreign Assets Control (“OFAC”)
- What is OFAC?
- Overview of sanctions programs
- OFAC jurisdiction
- Structure of OFAC regulations generally – regulations, executive orders, general licenses, specific licenses
- Prohibition of “dealing in property interests” of sanctioned entity
- Evasion, avoidance and facilitation
- Secondary sanctions
- Framework released by OFAC in May 2019
- Five essential components – management commitment, risk assessment, internal controls, testing and auditing, training
- Importance of tailored risk assessment
Selected Recent Enforcement Actions
- What is a voluntary self-disclosure?
- Benefits of disclosures
- OFAC penalty calculation
- New DOJ policy (released December 2019)
- OFAC and the SDN designation
- Definition of SDN
- Types of SDNs
- Process of Designation
- Navigating/searching the OFAC database
- Impact of OFAC designation
- Blocking of assets
- Licensure and the license application process for dealing with blocked assets
- Impact of blocking (preclusion of dealing with blocked assets and criminal penalties associated with violations)
- Supremacy of OFAC blocking statute(s)
- Commercial litigation (liens, foreclosures, etc.)
- Admiralty (maritime liens – Versilia litigation)
- Civil asset forfeiture
- Exception to OFAC supremacy: Anti-Terrorism Act/Terrorism Risk Insurance Act
Davis Wright Tremaine
- Significant Enforcement Activity in the Banking Sector
- Large financial institutions
- Small financial institutions
- Individual officers and directors
- Third-Party consultants
- Robust Regulatory Focus
- Compliance culture
- Information Technology Strength
- Risk Management Systems
- Emerging Issues
- Implications of Artificial Intelligence
- Action Plan for Financial Institutions
- Focus on Compliance
- Adequate Resourcing
- Maintain IT Strength
- Tailored Risk Management
- AI and Looking Ahead
For over twenty years, Adrianne Goins has resolved disputes for clients. Her practice focuses on commercial arbitration and government contracts disputes with connections to national security. Adrianne also relies on her advocacy skills in advising large commercial companies on compliance with U.S. economic sanctions, preparing voluntary disclosures and license applications, and representing clients before U.S. government agencies. Adrianne’s practice draws upon her experience inside Washington’s policy-making community. She has served as a special assistant to two high-level Defense officials, as a member of the staff of a U.S. Senator, and as a national security analyst at the Brookings Institution and the Congressional Research Service.
For over twenty years, Adrianne Goins has resolved disputes for clients. Her practice focuses on commercial arbitration and government contracts …
Glen Lindsay serves as Litigation Counsel for Saavedra | Goodwin. Glen’s practice concentrates primarily on business, regulatory and real estate litigation with an emphasis on matters involving fraud and/or deceptive business practices as well as matters at the intersection of commercial litigation and government regulatory compliance. Glen has been, and continues to be, on the front lines of litigation matters involving OFAC and its relationship with other state and federal statutes and areas of law, including admiralty and maritime issues as well as the recent amendments to the Anti-Terrorism Act.
Glen Lindsay serves as Litigation Counsel for Saavedra | Goodwin. Glen’s practice concentrates primarily on business, regulatory and real estate …
Kevin Petrasic is widely known for his work in advising leading U.S. and international financial institutions on core bank regulatory issues, critical compliance and policy matters, and risks arising from innovative financial technology. The breadth and sophistication of Kevin’s practice, his long relationships with leading US and international financial institutions, and his broad government experience--including service in senior posts with the U.S. Treasury Department’s Office of Thrift Supervision and the House Banking Committee--have equipped him to develop practical solutions informed by a deep understanding of regulators’ perspectives, priorities and constantly evolving policy objectives. Kevin’s clients have a particularly high regard for his ability to provide exceptional advice on complex and emerging issues involving both traditional and nontraditional bank charters, such as industrial loan company and special purpose national bank FinTech charters, regtech and artificial intelligence solutions for financial firms, and anti-money laundering issues and OFAC compliance.
Kevin has extensive experience in Dodd-Frank compliance, bank/thrift and holding company regulation, enforcement and transactional matters, troubled bank issues; credit card and consumer financial compliance laws, UDAAP issues, cybersecurity and data privacy/protection issues, compliance laws impacting payments systems, mergers and acquisitions, depository institution powers and activities, cross border regulation of financial firms, legislative matters and analysis, mortgage market regulation, and corporate governance.
Kevin Petrasic is widely known for his work in advising leading U.S. and international financial institutions on core bank regulatory …
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Method Of Presentation:
Basic Knowledge of International Law
NY Category of CLE Credit:
Areas of Professional Practice
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About Vinson & Elkins LLP
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About Saavedra Goodwin
Established in 1988, Saavedra | Goodwin is committed to providing large firm quality representation in a small firm atmosphere, offering individualized advice, counsel, and experienced legal representation to clients in a smaller community law firm setting that is tailored to each client’s unique situation. For more than two decades, their AV rated South Florida business, litigation, real estate and aviation attorneys have provided clients around the globe with personalized, efficient service designed to achieve each client's goals.
About Davis Wright Tremaine
Davis Wright Tremaine LLP is a full-service law firm of 550 lawyers in 8 offices across the United States, including New York, San Francisco, and Washington, DC. Our integrated team of financial services, technology, privacy, and corporate lawyers takes a collaborative approach to helping financial institutions, emerging FinTechs, investors, payment processors, and other companies launch innovative products or invest in new solutions. Learn more about how we can help at www.paymentlawadvisor.com.