Legislation
OFAC Reporting, Procedures and Penalties Regulations (31 CFR Part 501)
Guidance
Reports to OFAC:
- An immediate report of blocked property must be filed within 10 business days from the date the property was blocked.
- An annual report of blocked property must be submitted every year by 30 September.
- Financial institutions must report within 10 business days rejected transactions where the transaction was rejected because it would violate sanctions.
- As a condition of issuing a specific licence and a requirement for using a general licence, the person using the licence may be required to file reports with respect to the authorised transactions if this is prescribed in the licence.
Other reporting:
Companies may be required to report requests regarding the Arab Boycott of Israel from other companies. Before responding to such requests, companies are encouraged to call BIS’s Office of Antiboycott Compliance Advice Line.
The SEC can use comment letters to request information from parties regarding financial and reputational risks from regulatory action associated with disclosure to OFAC and business activities in sanctioned countries.
The International Traffic in Arms Regulations (ITAR) requires immediate notification to the Directorate of Defence Trade Controls (DDTC) if there is a violation of the ITAR. The Export Administration Regulations (EAR) prohibit engaging in any activity in respect of an item exported in violation of the EAR. If a company wishes to conduct an activity in relation to an unlawfully exported item, it must seek BIS permission.
OFAC, DOJ, BIS, and DDTC all encourage voluntary self-disclosures (VSDs), which they can significantly reduce monetary penalties and prevent criminal charges.
Useful documents / links:
Standardised reporting form
Guidance on Filing the Annual Report of Blocked Property
OFAC FAQs: Filing Reports with OFAC
OFAC FAQs: If I reject or block a transaction, when do I have to report the action to OFAC? How do I submit the report?
OFAC FAQs: I am required to submit a rejected transaction report to OFAC, but I do not have all the information that is required to be reported pursuant to 31 CFR § 501.604(b). Am I required to collect such information from my counterparty just to complete my rejected transaction report?Top of Form
OFAC FAQs: How can I report a possible violation of OFAC regulations by my company to OFAC? Will I receive “amnesty” if I report a possible violation to OFAC or if my failure to comply with OFAC regulations was inadvertent?
Cornell Law School Legal Information Institute – 31 CFR § 501.603 – Reports on blocked and unblocked property
Department of Commerce, Department of the Treasury, and Department of Justice Tri-Seal Compliance Note: Voluntary Self-Disclosure of Potential Violations
Department of Justice Voluntary Self-Disclosure Policy
BIS Recognizing and Reporting Possible Violations
