The Office of Foreign Assets Control (OFAC) is the primary government agency tasked with preventing entities from engaging with dangerous regimes, companies, and jurisdictions who don’t have America’s best interests in mind. To help ensure that US citizens aren’t conducting business with our foreign adversaries, the OFAC puts specific economic restrictions on certain countries, groups, and individuals.
In a recent wave of sanctions, the OFAC is targeting entities and specific vessels because they’ve been allegedly involved in the shipment of Iranian crude oil and LPG to Syria. This type of transaction is specifically barred by the OFAC because those crucial resources are headed directly into the hands of the Islamic Revolutionary Guard Corps-Qods Force and Hizbollah. At least nine vessels have been sanctioned, including a China-based ship called Star Ocean Shipmanage.
These efforts are crucial to helping stabilize the situation in the middle east. Hizbollah and Israel have been experiencing increasing tensions in recent years, and the last thing everyone needs is for things to escalate. To prevent that and protect America’s interests, it makes sense that we should take steps to prevent these crucial resources from winding up in the wrong hands.
Bradley Smith, a government official acting under the Secretary of the Treasury for terrorism and financial intelligence, explained in a report that Iran is heavily relying on these illegal oil and petroleum gas transactions to continue to fund their terrorist goals. These resources, he states, are directly being used to destabilize entire regions.
On top of these newly sanctioned vessels, OFAC has been targeting ships that have been accused of transporting weapons from Iran to Russia.
How to Remain OFAC Compliant
According to OFAC, all US citizens must comply with OFAC sanctions. These sanctions do change frequently, though, so it’s important to always check on the site’s database to ensure your transaction is approved before attempting to do business with a foreign actor.
While this step might seem like a lot of red tape, it’s worth your efforts. Why? For one, remaining compliant with OFAC protects the safety and security of our country. You don’t want to be the business that supplies a terrorist, reckless foreign government, or another bad actor with the supplies they need to cause destruction. For another, remaining compliant protects you and your business.
A failure to adhere to OFAC’s sanctions will result in fines that could exceed $1 million. You are also likely to be sentenced to time behind bars. Under current laws, you could get sentenced to serve up to 20 years in prison for willfully doing business with a sanctioned entity or individual.
So, how can you stay on top of all the recent rules, regulations, and sanctions? If you’re doing business internationally, then it’s time to step up and hire a legal team to protect your business. Here at Bukh Global, our team of qualified attorneys can help you keep track of all the latest OFAC sanction updates and keep you on the right side of the law.
Schedule a call with us now to get started on protecting your business.