OFAC urged persons subject to U.S. sanctions, including financial institutions and other businesses, to notify OFAC of any anticipated delays in meeting certain regulatory reporting deadlines due to COVID-19.
OFAC provided contact information for such persons to use if they expect any delays with regard to (i) filing blocking or reject reports, (ii) responding to a subpoena, (iii) submitting a license report or (iv) filing a petition to request reconsideration of a listing of a "Specifically Designated National." In addition, OFAC encouraged individuals and entities to send voluntary self-disclosures via email rather than through physical mail.
OFAC also recognized that the COVID-19 pandemic could impact sanctions compliance efforts, including by necessitating the temporary reallocation of compliance resources. OFAC stated that, in responding to potential sanctions violations in the future, it would "evaluate this as a factor in determining the appropriate administrative response" on a case-by-case basis.
Commentary
Many regulators continue to grapple with the compliance fallout of COVID-19. OFAC is no different. These guidelines remind companies that the pandemic does not obviate OFAC's regulatory requirements. At the same time, by acknowledging the potential for delays and logistical hurdles, OFAC signals its willingness to open a dialogue with regulated entities to discuss potential accommodations. Now, as always, companies should prioritize their compliance regimes and remain in close contact with OFAC concerning any potential delays or challenges posed by COVID-19.
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