Failing to comply with OFAC regulations and therefore doing business with specially designated nationals or other listed entities (due to the lack of an OFAC blacklist in your organization), opens up companies and individuals to legal action.
Corporations and individuals can be hit with civil and/or criminal penalties for noncompliance. These depend on the particular sanctions being violated.
- Civil penalties: from $250,000 (or twice the amount of each underlying violating transaction) to $1,075,000 per violation
- Criminal fines: from $50,000 to $10,000
For example, violating the Cuban embargo can result in the following:
Criminal: $1,000,000 in fines for corporations, $250,000 for individuals
Civil: up to a $65,000 fine per violation
Prison Sentences under OFAC
Violating the guidelines can also lead to prison time for corporate executives, as OFAC recent actions show. Sentences vary based on the program, but willful violations typically bring about 10 to 30 years of imprisonment.