How OFAC penalties are calculated

OFAC penalties are per violation, start at $356,000, and rise with factors like egregiousness, with intent not required.

TL;DR

TL;DR: OFAC civil penalties are assessed per violation and start at $356,000 (over $350,000), with intent not required; aggravating factors such as egregiousness and size can raise the amount, while the exact formula is not published.

Strict liability

The most important factor is that intent is not required. OFAC operates under strict liability, so a violation is penalized whether or not the business knew a counterparty was blocked. This removes the most common defense and makes the presence of a screening control the practical difference between a violation and a clean record.

The base figure

Civil penalties start at $356,000 per violation (over $350,000). Because each transaction with a blocked party can be counted separately, exposure compounds with volume, which is why a per-transaction screening call is cheaper than even a single penalty.

Aggravating factors

OFAC considers factors such as the egregiousness of the conduct, the size and sophistication of the party, and the presence of a compliance program when setting a final amount. The precise calculation formula is not published, so specific multipliers are Not documented. What is documented is that a working screening program reduces exposure, and the 50 Percent Rule extends blocking to entities a designated party owns 50 percent or more.