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![Page 1: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/1.jpg)
Compliance Practices for Exporters
Massachusetts Export Center 2015 Export Expo
December 11, 2015
Frank BoudraOffice of Foreign Assets Control
![Page 2: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/2.jpg)
Agenda
• What is OFAC?• Best practices for compliance• The licensing process• Recent updates: Iran, Cuba, Crimea, and
Ukraine• Enforcement Guidelines• Useful Resources
![Page 3: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/3.jpg)
What is OFAC?
Office of Foreign Assets Control (OFAC)U.S. Department of the Treasury
OFAC administers and enforces economic and trade sanctions against targeted:
• Foreign governments • Individuals • Entities • Practices
![Page 4: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/4.jpg)
Jurisdiction• Individuals, located anywhere in the world, doing business in the United
States or through U.S. persons
• Corporations, located anywhere in the world, doing business in the United States or through U.S. persons
• Transactions:– Transactions by foreign persons to the extent that they involve the
United States;– Transactions in property of a blocked person that comes within the
United States;– In limited circumstances, transactions involving controlled U.S.-origin
goods or technology.
![Page 5: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/5.jpg)
The Specially Designated Nationals (SDN) List
OFAC’s prohibited parties list
Currently, over 5,800 individuals and entities identified by OFAC
Individuals, entities, vessels, banks all over the globe with whom or with which transactions are prohibited
UPDATED FREQUENTLY
![Page 6: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/6.jpg)
Sanctions List Searchwww.treasury.gov/SDN
![Page 7: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/7.jpg)
Agenda
• What is OFAC?• Best practices for compliance• The licensing process
![Page 8: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/8.jpg)
OFAC Compliance Program
![Page 9: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/9.jpg)
OFAC Compliance Program
• Risk Assessment• Internal Controls• Testing/Audit• Responsible Individual(s)• Training
![Page 10: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/10.jpg)
Risk Assessment
![Page 11: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/11.jpg)
Internal Controls – Document Review
![Page 12: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/12.jpg)
Internal Controls – Document Review
![Page 13: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/13.jpg)
Internal Controls/Due Diligence
![Page 14: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/14.jpg)
Sanctions ProgramsComprehensive ProgramsSudan, Cuba, Syria, Iran (ITSR and IFSR), Ukraine/Russia-related (Crimea)
Limited ProgramsBurma (Myanmar), Conflict Diamonds, North Korea, Ukraine/Russia-related (Sectorial Sanctions)
List-Based Programs(Activity): Counter-Terrorism, Non-Proliferation, Counter Narcotics Trafficking, Transnational Criminal Organizations, Somali Piracy, Grave Human Rights Abuses Via Information Technology, Foreign Sanctions Evaders
(Regime): Balkans, Belarus, Burundi, Cote D’Ivoire, Democratic Republic of the Congo, Iraq, Lebanon, Libya, South Sudan-Related Sanctions, Ukraine/Russia-related, Venezuela-Related Sanctions, Yemen-Related Sanctions, Zimbabwe
![Page 15: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/15.jpg)
OFAC Terminology: Licenses
General License• Regulatory provision authorizing otherwise prohibited
transactions • No separate authorization necessary• Issued into the regulations or on OFAC’s website
Specific License• Authorization from OFAC issued to a specific person(s) • Allows a specific activity that would otherwise be prohibited
![Page 16: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/16.jpg)
Agenda
• What is OFAC?• Best practices for compliance• The licensing process• Recent updates: Iran, Cuba, Crimea, and
Ukraine
![Page 17: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/17.jpg)
Iran Highlights
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Examples: General Licenses*
• Gifts• Patents, Trademarks
& Copyrights• Household goods• Telecommunications
and Mail
• Legal services• Personal remittances• Official business of
certain International Organizations
• Sale of real property in Iran
*Not a comprehensive list and adhering to certain conditions
![Page 19: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/19.jpg)
Exports of Food, Medicine &Medical Devices
• Regulations allow for the export of food, medicine & medical devices to Iran
• Must fit the regulation’s definition• Must not be destined for certain prohibited
parties • Anything outside these parameters must be
authorized by a specific license.
![Page 20: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/20.jpg)
Applying for a Specific License
• Important information to remember to include
• Applicant information• Banks• Brokers• Purchasing agents• End-users• Shipment terms• Payment mechanism
• http://www.treasury.gov/resource-center/sanctions/Pages/licensing.aspx
![Page 21: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/21.jpg)
Joint Plan of Action (JPOA)• Limited, temporary, and reversible sanctions relief in effect from January
20, 2014, to June 30, 2015• Civil aviation safety statement of licensing policy• None of the U.S. trade sanctions that prohibit U.S. companies, including
their foreign subsidiaries, from engaging in trade with Iran have been altered, other than in the statement of licensing policy relating to civil aviation safety
![Page 22: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/22.jpg)
Cuba Updates
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Cuba Changes
• Travel• Travel and Carrier Services• Insurance• Importation of Goods• Telecommunications• Consumer Communications
Devices• Financial services• Remittances• Third-Country Effects
• Small Business Growth• Cash in Advance• Supporting Diplomatic
Relations and Official USG Business
• Support for the Cuban People
• Gift Parcels• Liberalizing License
Application Review Policy
January 15, 2015
![Page 24: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/24.jpg)
Cuba Changes
• Travel• Travel and Carrier Services• Telecommunications• Consumer Communications Devices• Third-Country Effects• Cash in Advance
![Page 25: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/25.jpg)
Crimea
![Page 26: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/26.jpg)
Crimea- E.O. 13685
• Prohibits new investment in Crimea• Prohibits imports or exports to or from the
U.S. to Crimea, directly or indirectly• Prohibited facilitation
![Page 27: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/27.jpg)
Crimea- E.O. 13685• General Licenses
– GL 4: Export or reexport of agricultural commodities, medicine, and medical supplies (including replacement parts)
– GL 6: Noncommercial, Personal Remittances Authorized– GL 7: Operation of Accounts Authorized– GL 8: Transactions Related to Telecommunications and
Mail Authorized – GL 9: Exportation of Certain Services and Software Incident
to Internet-Based Communications Authorized
![Page 28: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/28.jpg)
Ukraine/Russia-related Sanctions(List-based)
![Page 29: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/29.jpg)
Ukraine-related Sanctions(List-based)
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E.O. 13622 Directive 1
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E.O. 13622Directive 1
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E.O. 13622 Directive 2
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E.O. 13622 Directive 2
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E.O. 13622 Directive 3
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E.O. 13622 Directive 4
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E.O. 13622 Directive 4
![Page 37: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/37.jpg)
Agenda
• What is OFAC?• Best practices for compliance• The licensing process• Recent updates: Iran, Cuba, Crimea, and
Ukraine• Useful Resources
![Page 38: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/38.jpg)
OFAC’s Website: www.treasury.gov/ofac
Search the List
Read through the FAQ
See recent actions
![Page 39: Compliance Practices for Exporters Massachusetts Export Center 2015 Export Expo December 11, 2015 Frank Boudra Office of Foreign Assets Control.](https://reader035.fdocuments.us/reader035/viewer/2022062322/5697bffc1a28abf838cc14f3/html5/thumbnails/39.jpg)
Contact Information
OFAC Compliance Division1-202-622-2490 [email protected]
OFAC Licensing Division1-202-622-2480http://www.treasury.gov/resource-center/sanctions/Pages/licensing.aspx