Sanctions Penalties Tick Up Again

Penalties for violations of sanctions rules administered by the Office of Foreign Assets Control (OFAC) ticked up again yesterday. Most violations of OFAC’s rules now face statutory penalties of $295,141 or twice the value of the underlying transaction. Penalties for violations of OFAC’s narcotics trafficking regulations are now set at $1,466,485, with penalties for violations of other OFAC regulations ranging from $13,333 to $86,976.

The penalty adjustments are tied to inflation and are mandated under the Federal Civil Penalties inflation Adjustment Act of 1990, as amended.