Civil Monetary Penalty Inflation Adjustment

Key Points

• 1OFAC increased the dollar amounts of penalties it can impose for violating U.S. sanctions, which are rules restricting business with certain countries and designated individuals or organizations
• 2The penalty increases are tied to inflation, meaning they go up each year to maintain the same real-world impact as penalties from previous years
• 3Businesses that unknowingly or knowingly violate sanctions rules—such as selling goods to restricted countries or dealing with blocked individuals—now face higher potential fines
• 4These penalties are tools the government uses to encourage compliance with foreign policy and national security rules
• 5Companies engaged in international trade or finance should review their compliance procedures to ensure they're following current sanctions requirements

Key Dates