On June 18, the Office of Foreign Assets Control (OFAC) added two more individuals and seven more entities to the official sanctions list. These entities and individuals are all accused of providing a major source of revenue for Republika Srpska (RS) President Milorad Dodik and his family. Dodik has been designated on the sanctions list since January 5, 2022 as a result of Executive Order 14033. At the time, he was accused of being responsible for or being complicit in the violation of the DPA and committing other corrupt activities.

The year after Dodik was designated, his adult children Igor and Gorcia were also added to the list. These two were sanctioned as a result of supporting Dodik, and these newest sanctions are the result of the entities and individuals supporting the entire Dodik family.

The family is under such scrutiny because Dodik is accused of using his position to unfairly assign government contracts to private companies that his adult son Igor oversees. Both Igor and Dodik use their companies to avoid sanctions and hide the family’s involvement in various schemes.

Among those who are newly sanctioned include Prointer ITSS d.o.o Banja Luka Clan Infinity International Group, Kaldera Company El PGP d.o.o, Infinity Media d.o.o, K-2 Audio Services Banja Luka d.o.o, Una World Network d.o.o, and Sirus 2010 d.0.0 Banja Luka.

What You Need to Know About the U.S. Department of the Treasury’s Sanctions

You might not think that OFAC sanctions apply to your business, but these sanctions are always relevant, especially if you’re conducting business internationally. Not having knowledge that a person or entity you do business with was on the sanctioned list will not be considered a valid legal defense if you get charged. Every business, and every U.S. citizen for that matter, is obligated by law to ensure they’re remaining compliant with OFAC sanctions. To ensure compliance, businesses should:

• Ensure they are not engaging in transactions that violate OFAC’s country-based sanctions
• Ensure they’re not doing business with anyone listed on the OFAC’s Specially Designated Nationals and Blocked Persons

If you do business online, then ensuring your legal compliance will be even more difficult, especially if some transactions are shrouded in some form of anonymity. In general, it’s best if your business can get to know who they are making transactions with in order to reduce your liability. Making anonymous transactions could result in a sanctions violation, and that’s not something you want to cope with.

Violating OFAC’s sanctions will result in criminal charges. A conviction might result in up to 20 years in prison, and if it’s determined that your violation was willful, then you could face fines of up to $1 million. Even if your violation wasn’t willful or intentional, your business will still be significantly fined to the point your business may not be able to overcome the loss.

If you’re concerned about your business’s legal compliance with international laws, then our team of experienced attorneys can help. Schedule a meeting with our team now to discuss your needs in more detail with one of our best international legal advocates.