Breach: When Compliance Fails Handling OFAC Enforcement and Investigations. Presented by: Erich C. Ferrari, Ferrari Legal, P.C. Enforcement and Investigations. When compliance fails, where do you go next? Investigations Voluntary Self Disclosures Administrative Subpoenas Enforcement
Erich C. Ferrari, Ferrari Legal, P.C.
Self-initiated notice before or at the same time as OFAC or
any other federal, state or local government agency or official
discovers the apparent or substantially similar violation
A. Willful or Reckless Violation of Law
B. Awareness of Conduct at Issue
C. Harm to Sanctions Program Objectives
D. Individual Characteristics
E. Compliance Program
F. Remedial Response
G. Cooperation with OFAC
H. Timing of Apparent Violation in Relation to Imposition of Sanctions
I. Other Enforcement Action
J. Future Compliance/Deterrence Effect
K. Other Relevant Factors on a Case-by-Case Basis
In light of the General Factors, what is most appropriate:
* A Cautionary Letter?
* A Finding of Violation?
* A Civil Monetary Penalty?
A Cautionary Letter is sent if
Finding of Violation
If OFAC determines that a civil monetary penalty is appropriate, it considers the case with the following characteristics in mind:
Was it an Egregious Case?
If a Finding of Violation is not appropriate, the next step is to calculate the penalty.
Adjustment for Relevant General Factors
After OFAC calculates the appropriate monetary penalty, it will issue a Pre-Penalty Notice (PPN).
Response to Pre-Penalty Notice
Alleged violator may submit a written response to the PPN.