Do State Regulators Like the NYDFS Have Authority to Enforce OFAC Sanctions?

Robust Enforcement of OFAC Sanctions by Federal Authorities In recent years the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and other federal authorities have robustly enforced OFAC-administered sanctions against banks, particularly U.S. branches of foreign banks. Notable for their number, successiveness, and monetary penalty amounts imposed—often for U.S. sanctions and related violations, such as of the Bank Secrecy Act—these federal enforcement actions have nevertheless been overshadowed by state enforcement actions, in particular those of the New York State Department of Financial Services (NYDFS). NYDFS Enforcement of OFAC Sanctions  The NYDFS is the New York State agency with licensing, supervisory, and enforcement authority over, among others, New… Read More

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State Enforcement of OFAC Sanctions Against Banks

Special Issue Brief July 28, 2016 About this Publication This publication summarizes issues discussed in a forthcoming publication by Hdeel Abdelhady. It stems from ongoing work on key issues in U.S. law and its extraterritorial reach. For information about the issues discussed herein or MassPoint’s services, please contact Hdeel Abdelhady at  habdelhady@masspointpllc.com. Robust Enforcement of OFAC Sanctions by Federal Authorities In recent years the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and other federal authorities have robustly enforced OFAC-administered sanctions against banks, particularly U.S. branches of foreign banks. Notable for their number, successiveness, and monetary penalty amounts imposed—often for U.S. sanctions and related violations, such as of the… Read More