Penalties & Fines Result From OFAC Violations

Depending on the nature of the violation and other factors such as the country and industry involved, OFAC civil penalties can be as high as $1 million per violation for corporations and up to $250,000 per violation and 20 years imprisonment for individuals.

In addition to these steep penalties, there is also the possibility of negative publicity and loss of international business. For these reasons, companies are paying more attention to OFAC compliance more than ever before.

Export compliance does not only apply to big companies, and any U.S. business that sends products, services, or technology/technical data to foreign countries is subject to export control regulations.

Regardless of what you export to other countries, you need a compliance program that ensures you are compliant in all areas of your business to prevent export violations.

OFAC’s sanctions and embargoes programs are comprehensive and complex. The sanctions are designed to keep you away from certain countries, companies, individuals and/or practices.

Due to their far reach, any corporation that does business internationally should evaluate its practices and develop plans to ensure compliance with these rules.