OFAC Revises Enforcement Policy to Honor Prepenalty Notices, Settlements Issued Between Oct. 16, 2007 and Sept. 8, 2008
The Office of Foreign Assets Control has issued a Revised Interim Policy on enforcement cases in which a Prepenalty Notice was issued after October 16, 2007 (the enactment date of the International Emergency Economic Powers Enhancement Act) but before September 8, 2008 (the publication date of OFAC's amended Economic Sanctions Enforcement Guidelines).
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The Revised Interim Policy also addresses cases in which OFAC staff agreed to recommend a proposed settlement amount internally, and that amount was memorialized in writing between the parties during that time period.
(OFAC amended its Economic Sanctions Enforcement Guidelines pursuant to the signing of the IEEPEA Enhancement Act, which included changes to the process for determining civil penalty amounts, among other things.
See ITT's Online Archives or 09/16/08 news, 08091625, for BP summary of OFAC's amended Economic Sanctions Enforcement Guidelines. See ITT's Online Archives or 10/23/07 news, 07102325, for BP summary of the President signing the Enhancement Act into law.)
OFAC to Honor Prepenalty Notices/Settlements Issued Between 10/16/07-09/08/08
OFAC's Revised Interim Policy states that in those cases in which a Prepenalty Notice was issued after October 16, 2007, but before September 8, 2008, OFAC will honor the terms of the Prepenalty Notice and will continue to process the case according to the Enforcement Guidelines or Banking Enforcement Procedures pursuant to which the Prepenalty Notice was prepared.
Similarly, in cases where OFAC staff agreed to recommend a proposed settlement amount internally, and that amount was memorialized in writing between the parties between October 16, 2007 and September 8, 2008, OFAC will apply the then-applicable Enforcement Guidelines or Banking Enforcement Procedures in considering whether to approve the settlement.
OFAC notice (posted 10/28/08) available at http://www.treas.gov/offices/enforcement/ofac/actions/20081028.shtml
OFAC Revised Interim Policy (dated 10/28/08) available at http://www.treas.gov/offices/enforcement/ofac/civpen/penalties/interim_pol_rev10282008.pdf