1. Compliance Practices for Exporters
Massachusetts Export Center
2015 Export Expo
December 11, 2015
Frank Boudra
Office of Foreign Assets Control

2. Agenda What is OFAC? Best practices for compliance
The licensing process
Recent updates: Iran, Cuba, Crimea, and Ukraine
Enforcement Guidelines
Useful Resources

3. 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

4. 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.

5. 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

6. Sanctions List Search

7. Agenda What is OFAC? Best practices for compliance
The licensing process

8. OFAC Compliance Program

9. OFAC Compliance Program
Risk Assessment
Internal Controls
Testing/Audit
Responsible Individual(s)
Training

10. Risk Assessment

11. Internal Controls – Document Review

12. Internal Controls – Document Review

13. Internal Controls/Due Diligence

14. Sanctions Programs Comprehensive Programs
Sudan, Cuba, Syria, Iran (ITSR and IFSR), Ukraine/Russia-related (Crimea)
Limited Programs
Burma (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

15. 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

16. Agenda What is OFAC? Best practices for compliance
The licensing process
Recent updates: Iran, Cuba, Crimea, and Ukraine

17. Iran Highlights

18. 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

19. 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.

20. Applying for a Specific License
Important information to remember to include
Applicant information
Banks
Brokers
Purchasing agents
End-users
Shipment terms
Payment mechanism

21. 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

22. Cuba Updates

23. 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

24. Cuba Changes Travel Travel and Carrier Services Telecommunications
Consumer Communications Devices
Third-Country Effects
Cash in Advance

25. Crimea

26. 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

27. 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

28. Ukraine/Russia-related Sanctions (List-based)

29. Ukraine-related Sanctions (List-based)

30. E.O Directive 1

31. E.O Directive 1

32. E.O Directive 2

33. E.O Directive 2

34. E.O Directive 3

35. E.O Directive 4

36. E.O Directive 4

37. Agenda What is OFAC? Best practices for compliance
The licensing process
Recent updates: Iran, Cuba, Crimea, and Ukraine
Useful Resources

38. OFAC’s Website: www.treasury.gov/ofac
Search the List
Read through the FAQ
See recent actions

39. Contact Information
OFAC Compliance Division OFAC Licensing Division