Five Essential Elements of a Sanctions Compliance Program

The Office of Foreign Asset Control (OFAC) released a document called A Framework for OFAC Compliance Commitment. This document establishes certain commitments that OFAC believes are necessary to have a robust sanctions compliance program.

Elements of an Effective Sanctions Compliance Program

OFAC states that a sanctions compliance program should be based on five essential elements:

Management commitment
Risk assessment
Internal controls
Testing and auditing
Training

OFAC states that it is possible for an effective sanctions compliance program to mitigate the civil penalties for apparent violations of US sanctions.

What is Management Commitment?

The first element of an effective sanctions compliance program is management commitment. OFAC expects senior management to be committed to ensuring compliance with US sanctions. It is important for senior management to review and approve their company’s or organization’s sanctions compliance program.

OFAC wants to see reporting between senior management and lower-level management and meetings between the two for ensuring ongoing compliance with US sanctions. Additionally, OFAC would like to see a sanctions compliance officer dedicated to ensuring ongoing compliance with US sanctions. OFAC also seeks an understanding by the compliance officers of the risks involved with regards to the technology systems in the organization and US sanctions.

Senior management should also promote a culture of compliance in the organization and demonstrate that any apparent violations of the US sanctions are serious and should be addressed.

How an OFAC Sanctions Compliance Attorney Could Help

An OFAC sanctions attorney could help draft a sanctions compliance program or ensure an existing policy meets OFAC’s standards. This can a business or organization avoid sanctions violations and mitigate any risks involved with their ongoing business dealings. A US sanctions attorney can also update and audit the company on any potential sanctions-related issues. For help with your compliance program, schedule a consultation with a knowledgeable OFAC attorney.