What is the OFAC framework for civil penalties?

OFAC's civil penalty framework is governed by the Economic Sanctions Enforcement Guidelines, published at 31 CFR Part 501, Appendix A. The framework determines whether a violation occurred, whether it was egregious, what the base penalty is, and how it should be adjusted.

Penalty calculation formula

1. Base penalty: Determined by whether the case is egregious or non-egregious and whether there was voluntary self-disclosure.
2. Aggravating factors (increase penalty): willfulness, management awareness, harm to sanctions objectives, lack of cooperation.
3. Mitigating factors (decrease penalty): voluntary disclosure, cooperation, compliance program, remedial actions.
4. Final penalty: Base ± adjustments, within statutory caps.