What happens when OFAC screening fails

Screening failure consequences: (1) Undetected violations — transactions to SDNs proceed without your knowledge. (2) Discovery — OFAC, blockchain analytics, or counterparty reporting reveals the violation. (3) Investigation — OFAC investigates, potentially going back years. (4) Enforcement — penalties, settlements, or criminal referral. (5) Remediation — fix the screening gap, implement controls, consider voluntary disclosure.