OFAC Enforcement
OFAC Enforcement
OFAC enforcement is the process by which the US Treasury's Office of Foreign Assets Control investigates, penalizes, and prosecutes violations of US economic sanctions. Enforcement operates under a strict liability standard — intent is not required for a violation to occur.
Strict liability explained
Strict liability means you can violate OFAC sanctions even if you did not know you were doing so. If your agent pays a wallet that happens to be on the SDN list, the violation exists regardless of whether you checked. This is why pre-payment screening is not optional — it is the minimum viable defense against strict liability.
Enforcement actions by type
| Action type | Description | Typical penalty range |
|---|---|---|
| Cautionary letter | No monetary penalty; warning issued | $0 |
| Finding of violation | Violation confirmed, no penalty | $0 |
| Civil penalty | Monetary fine imposed | $10K - $968M |
| Criminal referral | Referred to DOJ for prosecution | Up to $1M + 20 yrs |
The enforcement process
- Detection: Violation identified through self-disclosure, bank reporting, blockchain analysis, or law enforcement referral.
- Investigation: OFAC investigates the facts, requests documents, and assesses the nature of the violation (egregious vs. non-egregious).
- Penalty determination: Base penalty calculated, then adjusted up or down based on aggravating and mitigating factors.
- Settlement or litigation: Most cases settle. OFAC publishes enforcement actions on its website.
See also: OFAC enforcement data — complete historical enforcement data compiled by SanctionsAI.