What is the OFAC enforcement process?

OFAC follows a structured process: investigate the conduct, determine how serious it was, calculate a base penalty, and adjust it up or down.

TL;DR

TL;DR: Enforcement moves through investigation, a determination of egregiousness, a base penalty calculation, and adjustments for aggravating or mitigating factors.

Investigation and determination

OFAC, the Office of Foreign Assets Control within the US Treasury, first looks at the conduct and whether it violated a sanctions program. A key part of this stage is assessing how serious the violation was, including whether it was egregious. Because sanctions carry strict liability, intent is not required for a violation to be found.

Base penalty and adjustments

OFAC calculates a base penalty from the violation and then adjusts it for aggravating factors, such as willful conduct or a weak compliance program, and mitigating factors, such as voluntary disclosure and strong controls. Civil penalties start at $356,000 per violation.

What this means for your program

The clearest way to avoid this process is to screen before payment. The 50 Percent Rule and the SDN List are best handled with an automated check. SanctionsAI returns clean or flagged in under 100 ms across 947 OFAC-listed wallets and 19,218 SDN names, synced hourly.