OFAC May 2024 Reporting Rule Final

OFAC is amending the Reporting, Procedures and Penalties Regulations (RPPR). The RPPR sets forth standard reporting and recordkeeping requirements and license application and other procedures relevant to the economic sanctions programs administered by OFAC.

This final rule adds three exceptions to the reporting requirement for any blocked property that is unblocked or transferred.

FAQ:  Errors / Compliance Release

OFAC is also issuing a new RPPR-related Frequently Asked Question (FAQ 1196).

"What should I do if I blocked and reported property in error due to mistaken identity or typographical or similar errors?"

"OFAC strongly encourages organizations subject to U.S. jurisdiction to develop risk-based sanctions compliance programs that allow for the proper evaluation and adjudication of potential name matches to blocked persons. Organizations should not use the Compliance Release process as a substitute for internal controls to mitigate the risk of transactions or dealings in blocked property. 

Organizations should not request a Compliance Release in situations in which property was correctly blocked, but the status of the property has subsequently changed (e.g., a change in the portion of ownership by a blocked person).  In such scenarios, organizations should apply for a specific license. The Compliance Release process is solely for cases of mistaken identity or typographical or similar error, in which there was never a blockable interest in the subject property (e.g., a name match to a blocked person that the reporting organization later determines, with reliable supporting evidence, to be a false positive). Please note neither a specific license nor a Compliance Release is required to unblock property when a person is delisted from the Specially Designated Nationals and Blocked Persons List.