FIBA Alerts: AML & Lara Committee

by | Jul 24, 2024 | News and Alerts

The Office of Foreign Assets Control (OFAC) has issued guidance to address questions raised by recent legislation that extended the statutes of limitation for violations of certain sanctions that the agency administers from 5 to 10 years. This means that OFAC may be able to commence enforcement actions for civil violations of the International Emergency Economic Powers Act (IEEPA) or the Trading with the Enemy Act (TWEA) if the action is commenced within 10 years of the latest date of the violation if such date was after April 24, 2019. This change was signed into law by President Biden on April 24, 2024, and is found in Section 3111 of the 21st Century Peace through Strength Act, Pub. L. No. 118-50, div. D.

To match the new statute of limitations period, OFAC anticipates publishing an interim final rule, with an opportunity to provide comment, extending from 5 years to 10 years the recordkeeping requirements codified at 31 C.F.R. § 501.601, which includes, among other things, any transaction subject to OFAC regulations. OFAC anticipates that a 10-year recordkeeping requirement would become effective six months after publication of the interim final rule. Failure to retain records for the required length of time could result in violations of OFAC regulations.

Join FIBA’s 30-day Online OFAC Course on 8/15/24

Enhance your understanding of international sanctions programs with a focus on the U.S. Office of Foreign Assets Control (OFAC).

In this course, you will:

learn essential compliance steps for financial institutions.

understand the purpose of international sanctions programs.

become familiar with OFAC’s compliance requirements and lists.

review active OFAC sanctions programs and their implications.

identify high-risk activities related to OFAC.