OFACFinal Rule

Reporting, Procedures and Penalties Regulations

Finance & BankingOther

Summary

This regulation sets out the rules for how financial institutions and businesses must report suspicious activities and violations to the Office of Foreign Assets Control (OFAC), which enforces U.S. sanctions and anti-money laundering laws. The rule also explains what penalties companies can face if they fail to follow these reporting requirements or break sanctions rules.

Key Points

  • 1Banks and financial companies must quickly report any suspicious transactions or violations they discover to OFAC, the government agency that enforces economic sanctions
  • 2The regulation spells out specific procedures for how and when to file these reports, including what information must be included and the deadlines for submission
  • 3Companies that fail to report violations or break sanctions rules can face significant financial penalties, including fines that increase based on how serious or repeated the violation is
  • 4The rules apply to all types of financial institutions, money services businesses, and other companies that handle money or financial transactions
  • 5OFAC uses these reports to catch illegal financial activity linked to terrorists, rogue nations, and other national security threats

Key Dates

Published

March 21, 2025

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.

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