In an increasingly interconnected world, international sanctions and Office of Foreign Assets Control (OFAC) regulations present complex challenges for companies in strategic sectors such as finance, energy and natural resources. From complying with SDN List regulations to implementing effective compliance programs, staying within the legal framework is vital to protecting your operation and business reputation.
What is OFAC and why does it matter?
OFAC, a division of the U.S. Department of the Treasury administers and enforces economic and trade sanctions to meet U.S. foreign policy and national security objectives. These sanctions can impact companies from any country that deal in currencies, goods or services related to the U.S. or its key trading partners.
For transnational companies in sensitive sectors such as oil, mining, banking and international trade, an inadvertent violation can result in severe fines, loss of access to the global financial system or irreversible damage to corporate reputation.
Common Risks and Solutions for High Profile Companies
Larger institutions and companies face specific risks related to customers, geographic locations, supply chains and products. For example:
- Transactions with Sanctioned Jurisdictions: Collaboration with countries such as Iran, Cuba or Venezuela requires explicit authorizations or being subject to complete prohibitions.
- Lack of Systems Updating: As in the case of UniCredit Bank, where manual processes led to systematic violations of OFAC sanctions.
- Insufficient training: Fines to aviation companies with operations in Venezuela reveal how errors in poorly trained subsidiaries can cause significant penalties.
How We Protect Our Customers
At Venfort Abogados, we design compliance strategies that not only minimize risks, but also strengthen our clients' position in the global market. We offer:
- Customized Risk Assessments: We identify specific vulnerabilities of your operation in markets regulated by international sanctions.
- Advice on Regulatory Compliance: From transaction-specific licenses to the implementation of due diligence programs.
- Representation in Investigations: Legal assistance in cases related to OFAC violations and design of corrective plans.
A Step Forward in International Compliance
Don't leave your company's legal security to chance. Whether your operation is in Venezuela, the United States, or in markets with strict regulations, our team of specialized lawyers can provide you with the support you need to operate with confidence.
Contact Venfort Abogados today and protect your business from international regulatory risks.
