Ofac Tolling Agreements

G. Cooperation with OFAC: the nature and extent of the person`s cooperation with OFAC, including whether the individual voluntarily forwarded the matter to OFAC and provided OFAC with all relevant information, including other possible offences; if the person has cooperated with OFAC and has agreed, if necessary, to toll agreements with respect to the applicable limitation period. Two 2018 enforcement actions (Societe Generale and Ericsson Inc./Ericsson AB) dealt with allegations of violations of Sudanese sanctions regulations adopted since 2012 or earlier, and a third enforcement measure (JPMorgan) related to pre-2015 conduct. The general statute of limitations for violations of U.S. sanctions is five years from the date of the violation. However, enforcement objectives regularly include toll agreements with OFAC to ensure full borrowing for cooperation, which extends the applicable limitation period (in some cases, significantly). ofAC took into account several mitigating factors in determining the amount of compensation, including (i) OFAC did not commit any violations of the bank in the five years prior to the earliest date of the disputed transactions; (ii) the Bank has cooperated fully in the investigation of the alleged offences, including the conclusion of a statute of limitations and the agreement to extend the agreement; (iii) the Bank presented significant investigative evidence concerning a foreign financial institution that hosted an account involved in the settlement of transactions; and (iv) the Bank has taken several corrective measures in response to alleged violations, such as exiting the Sudanese market in 2014, hiring new executives and implementing improvements to its compliance program. While OFAC is quite liberal when it comes to granting extensions, there is often a considerable delay between the occurrence of a clear violation and the period in which OFAC is able to investigate the matter. Therefore, the granting of extensions by OFAC may lead to situations where the overt offences are outside of the five-year period of OFAC. This is of particular interest to of the OFAC, given its delay and scale and the time spent dealing with an enforcement case. As a result, OFAC often asks the convened parties to enter into a toll agreement to extend the period during which OFAC can investigate the overt violation beyond this five-year period. These toll agreements look like this.

1. Billing process. Settlement interviews may be initiated by OFAC, the person concerned or the authorized representative of the person concerned. Settlements are generally negotiated in accordance with the principles set out in these guidelines with respect to appropriate penalty amounts.