Complying with U.S.Sanctions OFAC outlines standards of scrutiny

摘要

Buying raw material ingredients and selling and delivering shipments of lubricant products to international buyers around the world are no easy tasks.The numerous sanctions imposed by the U.S.and other governments seem to litter international commercial markets and magnify the complexity of selling those shipments safely.The U.S.Office of Foreign Assets Control(OFAC) also understands these complexities,along with the normal propensity of buyers and sellers to allow familiarity,commercial history and time sensitivity(among other factors) to erode the diligence needed to prevent prohibited conduct.OFAC recently published updated guidance and requirements for compliance programs designed by companies to prevent infractions in this area.Out of that guidance,the agency identified a list of common causes associated with these violations that lead to enforcement action.Topping the list as the single greatest cause is the lack of a formal compliance program.The fact that this is the single greatest cause sends a few messages.First,a compliance program requires more than a document in electronic file.Second,it means that compliance with this area should not be addressed simply by a section in a document that addresses a variety of conduct issues.Most saliently,it means that the program must be sufficiently robust to detect and prevent potential misconduct before it happens.This last point sizes the need for development of procedures,installation of process controls and assignment of responsibilities to specific individuals who are well-positioned to monitor conduct in this area.