What is the OFAC enforcement process?

OFAC's enforcement process follows the Economic Sanctions Enforcement Guidelines (31 CFR Part 501, Appendix A). The process has four stages: investigation, determination of violation type, penalty calculation, and imposition.

Stage by stage

1. Investigation: OFAC gathers facts through subpoenas, document requests, and interviews.
2. Violation determination: Was the violation egregious or non-egregious? This is the single most important determination.
3. Penalty calculation: Base penalty is calculated, then adjusted for aggravating factors (willfulness, management involvement, harm) and mitigating factors (voluntary disclosure, cooperation, compliance program).
4. Imposition: The penalty is imposed or a settlement is reached.