How OFAC enforcement actions work

An OFAC enforcement action moves through detection, investigation, penalty calculation, and resolution, and intent is not required.

TL;DR

TL;DR: OFAC enforces sanctions under strict liability, so a violation can trigger a civil penalty starting at $356,000 even when the party did not intend to break the rules.

Detection and investigation

OFAC, the Office of Foreign Assets Control at the US Treasury, typically learns of a violation through a voluntary self-disclosure, a referral from a bank, or a review of transaction records. Investigators then examine whether a transaction touched a person or wallet on the SDN list, which lists Specially Designated Nationals and Blocked Persons.

Penalty calculation

Because OFAC applies strict liability, the agency does not have to prove intent. Penalties are calculated from the base civil penalty amount and the egregiousness of the case. Civil penalties start at $356,000 per violation, so even a single unscreened transaction can be costly.

Resolution and the lesson

Most cases end with a settlement or a penalty notice, sometimes with compliance commitments attached. The practical lesson for anyone moving money is to screen first: a single automated check before each payment is far cheaper than a civil penalty.

What a respondent can do

A respondent can shape the outcome by cooperating early. Voluntary self-disclosure, cooperation, and remediation of the underlying screening gap are factors OFAC weighs when setting the final penalty. Many cases cite weak or missing screening as the root cause, so closing that gap before OFAC asks is the strongest available defense.