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So your probably sitting there with this administrative subpoena from the Office of Foreign Assets Control and your stomach is in absolute knots. Maybe you did business with someone on a sanctions list. Maybe you processed payments through countries you shouldn’t have. Or maybe your just caught up in there latest sanctions enforcement sweep. Look, we get it. Your ABSOLUTELY TERRIFIED. And you should be! Because OFAC civil penalties can reach $20 MILLION per violation and willful violations mean 20 YEARS in federal prison!
Let me explain the international nightmare your facing. OFAC enforces U.S. economic sanctions against foreign countries, terrorists, and drug traffickers with authority that spans the entire global financial system!
OFAC doesn’t just target obvious bad actors – they destroy legitimate businesses that accidentally violate there incredibly complex sanctions programs! Over 30 different sanctions programs covering countries like Iran, Russia, Cuba, North Korea, Syria, and dozens more! The Specially Designated Nationals (SDN) List contains thousands of individuals and companies you can’t do business with. And it changes DAILY!
Here’s what’s really scary – strict liability means you don’t need criminal intent to be destroyed! Didn’t know your customer was on the SDN list? Too bad! Didn’t realize that wire went through a sanctioned country? YOUR STILL LIABLE! We’ve seen companies pay millions for transactions they had no idea violated sanctions!
Hold onto something because these numbers will bankrupt your entire company! OFAC penalties are absolutely devastating and designed to destroy violators:
Civil penalties for 2024 reach $356,579 per non-egregious violation! But “egregious” violations? The statutory maximum is the GREATER of $2,040,229 or TWICE the transaction value! Had a $10 million deal with the wrong party? That’s a $20 MILLION penalty!
Criminal penalties for willful violations add up to $1 million in fines and 20 years in federal prison! And here’s what’s terrifying – each transaction, each wire, each payment is a SEPARATE violation! We’ve seen companies face $50 million in penalties for what they thought were routine international transactions!
Your probably wondering “How did they find out about my international business?” Let me tell you what puts companies in OFAC’s crosshairs:
Banks file Suspicious Activity Reports (SARs) for any transaction involving sanctioned countries or parties. Even if the transaction is blocked, you still get investigated! Financial institutions have automated screening systems that flag anything remotely connected to sanctions targets.
Voluntary self-disclosures from competitors trying to eliminate you from international markets! Whistleblowers inside your company who think there getting a big payday! Due diligence during mergers that uncovers past violations! Even routine audits can trigger mandatory reporting to OFAC!
The really unfair part? OFAC uses “administrative subpoenas” that don’t require court approval! They can demand any documents they want just by sending you a letter! No judge, no probable cause, just unlimited fishing expeditions into your business!
The scope of OFAC subpoenas is absolutley overwhelming. There demanding EVERYTHING about your international transactions:
All bank records for the past five years (the statutory record-keeping requirement), every international wire transfer and SWIFT message, contracts with foreign parties, emails mentioning any foreign country or party, compliance policies and procedures, internal audit reports, and even personal communications of executives!
OFAC subpoenas typically demand records you’re legally required to maintain for five years. But here’s the trap – if you didn’t keep proper records, that’s a SEPARATE violation! Can’t produce the documents? That’s evidence of willful violation! Destroyed old emails? OBSTRUCTION!
This distinction can mean the difference between survival and bankruptcy! OFAC determines egregiousness based on several factors:
Non-egregious violations might result in penalties capped at $356,579 per violation if you cooperate. But egregious violations? NO CAP! We’re talking statutory maximum of $2 million or double the transaction value! A single egregious violation can destroy a billion-dollar company!
What makes violations egregious? Willful or reckless conduct (they always claim its willful!), awareness of the conduct by management, harm to sanctions objectives, individual characteristics like commercial sophistication, and prior sanctions history. Even first-time violators get labeled egregious if OFAC thinks you “should have known better”!
YES! And it happens MORE OFTEN than you think! OFAC routinely refers cases to DOJ for criminal prosecution!
Willful violations of IEEPA (International Emergency Economic Powers Act) carry 20 years in prison! The Trading with the Enemy Act adds another 10 years! Conspiracy charges, money laundering charges, and false statements to federal agents pile on more decades! We’ve seen executives get 15-year sentences for sanctions violations there companies committed!
The criminal standard of “willfulness” is shockingly low – you just need to know your conducting a transaction, not that its illegal! “I didn’t know they were sanctioned” is NOT a defense! One CEO is serving 10 years because his company sold products to a distributor who resold them to Iran – he never even dealt with Iran directly!
This is the ultimate trap that destroys companies! OFAC claims voluntary self-disclosure reduces penalties by 50% but look at the reality!
Companies that self-report still pay MILLIONS! BNP Paribas self-reported and paid $8.9 BILLION! Standard Chartered self-reported and paid $1.1 billion! Even small companies that self-report face million-dollar penalties that bankrupt them!
Even worse, self-reporting triggers investigations by DOJ, state prosecutors, and foreign regulators! Your voluntary disclosure becomes evidence in criminal prosecutions! We’ve seen companies self-report minor violations only to face criminal charges, shareholder lawsuits, and regulatory actions worldwide!
Buckle up for YEARS of business paralysis! OFAC investigations are notoriously long and destructive:
Initial subpoena response (60 days but they demand impossibly broad production), document review and follow-up requests (6-12 months), settlement negotiations if your lucky (6-12 months), or enforcement action and penalty (sudden, without warning), plus potential criminal referral adding years more!
During this time, your international business is destroyed! Banks close your accounts as “high risk,” international partners flee, payment processors drop you, and insurance companies cancel coverage! Legal fees? Expect $2-5 MILLION for serious OFAC defense! We’ve seen thriving exporters become bankrupt before investigations even conclude!
This is where OFAC gets REALLY terrifying! Secondary sanctions target non-U.S. companies doing business with sanctioned parties!
Even if your a foreign company with no U.S. presence, OFAC can still destroy you! They’ll cut you off from the U.S. financial system entirely! No dollar transactions, no U.S. banks, no American customers! We’ve seen European companies destroyed because they sold legitimate products to Iran!
And here’s what’s insane – OFAC creates new sanctions programs constantly! Russia sanctions expanded overnight after Ukraine invasion! China sanctions appear without warning! Your legal deal today becomes criminal tomorrow! There’s literally no way to stay compliant when the rules change daily!
ABSOLUTELY! This is often worse than the penalties! Banks are terrified of OFAC violations and will drop you immediately!
The moment a bank sees an OFAC subpoena, they’ll file SARs, freeze accounts, and terminate relationships! Even if your ultimately cleared, banks won’t take you back! Your branded as “high risk” forever! We’ve had clients unable to open checking accounts anywhere after OFAC investigations!
International banking becomes impossible! No SWIFT transfers, no letters of credit, no trade financing! Your business partners can’t pay you, you can’t pay suppliers, and your entire operation grinds to a halt! This happens IMMEDIATELY upon subpoena issuance, before any finding of violation!
Look, we’re not your typical white-collar lawyers who’ve never dealt with sanctions complexity. We specialize in OFAC defense because these cases require deep understanding of both sanctions law and international business.
We know how OFAC interprets “facilitation” and “causing violations” to expand liability. We understand the 50% ownership rule and how subsidiary violations destroy parent companies. We can navigate the impossibly complex general licenses and exemptions. Most importantly, we know how to prevent administrative violations from becoming criminal prosecutions!
Other firms tell you to cooperate fully and hope for leniency. That’s EXACTLY how companies pay billions and executives go to prison! We fight strategically, challenging OFAC’s jurisdiction, forcing them to prove knowing violations, and negotiating when settlement makes sense – not just rolling over!
Call us RIGHT NOW at 212-300-5196
OFAC investigations destroy international businesses overnight!
Sanctions law specialists – Former Treasury officials – Available 24/7!
Don’t wait another second! OFAC moves at lightning speed when they want to make examples. Your bank accounts could be frozen tomorrow morning. Your business could be added to the SDN list. Criminal prosecutors could be preparing indictments right now!
Remember – OFAC has essentially unlimited power over any transaction touching the U.S. financial system. One wire through a U.S. correspondent bank can trigger millions in penalties and decades in prison. You need someone who understands both the complexity of sanctions law and how to fight back effectively. Call us NOW before that administrative subpoena becomes criminal charges!
Very diligent, organized associates; got my case dismissed. Hard working attorneys who can put up with your anxiousness. I was accused of robbing a gemstone dealer. Definitely A law group that lays out all possible options and best alternative routes. Recommended for sure.
- ROBIN, GUN CHARGES ROBIN
NJ CRIMINAL DEFENSE ATTORNEYS