U.S. FEDRegulation
OFAC consolidates sanctions penalty procedures in new 31 CFR Part 505
OFAC issued a final rule adding 31 CFR Part 505, the Sanctions Penalties Regulations, which reproduces civil and criminal penalty procedures for sanctions violations under IEEPA and the UNPA without making substantive changes. IEEPA civil penalties reach the greater of $377,700 or twice the transaction value; willful criminal violations carry up to $1 million in fines and 20 years' imprisonment. The rule took effect on publication, with a willfulness mens rea statement drafted in consultation with the Justice Department.
Key points
- IEEPA civil penalties reach the greater of $377,700 or twice the transaction value, subject to inflation adjustment.Federal Register
- Willful IEEPA violations carry up to $1 million in fines, 20 years' imprisonment, or both.Federal Register
- Existing penalty subparts in 31 CFR chapter V will be replaced with cross-references to Part 505.Federal Register
- Voluntary self-disclosure halves base civil penalties; OFAC weighs willfulness, awareness, and harm.Federal Register
- The willfulness mens rea statement for criminal offenses was drafted in consultation with the Justice Department under E.O. 14294.Federal Register
- OFAC will publish penalty and settlement information on ofac.treasury.gov at least monthly.Federal Register
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Federal Register
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RegulationU.S.OFAC Sanctions Penalties RegulationsComplianceFinancial servicesFor practitionersFor governance