Sanctions 2026

USA Law and Practice Contributed by: Bruce G. Paulsen, Brian Maloney and Hannah Thibideau, Seward & Kissel LLP

2. Overview of Regulatory Field 2.1 Primary Regulators

2.2.3 Civil Enforcement Action Since June 2023, OFAC has brought 47 enforcement actions, resulting in over USD2.1 billion in settlements or penalties against domestic and foreign actors for violations of sanctions programmes. Action in 2023 Perhaps the most significant action in recent years was a 2023 action brought against virtual currency trading platform Binance Holdings Ltd (Binance). Binance settled with OFAC for USD968,618,825 for “egregious” violations that were not voluntarily dis - closed. OFAC alleged that Binance was aware that individuals from sanctioned jurisdictions were using its platform, yet it continued to match and execute trades between users from sanctioned jurisdictions and the US. In addition to the monetary fine, Binance was, among other things, ordered to retain a compliance moni - tor for five years to enhance its sanctions compli - ance programme, conduct periodic risk assessments as well as develop methods to identify, analyse, and address sanctions risks, improve its IT screening, and provide regular training to employees and executives. Action in 2024 In 2024, OFAC was active in bringing enforcement actions against companies for shipping goods to sanctioned individuals or individuals located in sanc - tioned jurisdictions. In December 2024, OFAC settled with Cordoba Music Group LLC for shipping musi - cal instruments and parts that it knew were destined for Iran. Also in December 2024, OFAC settled with SkyGeek Logistics, Inc – a US-based aviation supply company – for shipping goods to individuals located in the UAE that were blocked under OFAC’s Russian Harmful Foreign Sanctions Activities programme. Action in 2026 In May 2026, OFAC announced a USD275 million settlement with Adani Enterprises Limited (AEL). AEL agreed to settle its liability for 32 apparent violations of OFAC’s Iran sanctions under 31 C.F.R. 560. From 2023 to 2025, AEL purchased shipments of liquefied petro - leum gas (LPG) from a Dubai-based trading company purportedly involved in supplying LPG from Oman and

OFAC is the primary agency responsible for adminis - tering and enforcing US sanctions. The Department of Justice (DOJ) has the authority to investigate and prosecute criminal violations of certain US sanctions programmes. The Bureau of Industry and Security (BIS) administers and enforces the Export Administra - tion Regulations (EAR), which are the primary export control regulations in the US. The US State Department is also responsible for administering certain economic sanctions and export controls. For example, the State Department’s Direc - torate of Defense Trade Controls (DDTC) in the Bureau of Political-Military Affairs implements the Internation - al Traffic in Arms Regulations (ITAR), pursuant to the Arms Export Control Act. 2.2 Enforcement 2.2.1 Enforcement Responsibilities OFAC is responsible for investigating and enforcing civil violations of US sanctions, and the DOJ has the authority to investigate and enforce criminal violations. Pursuant to 18 USC. § 981 (a)(1)(C), the DOJ also has the authority to seize and subject to civil forfeiture assets in the United States involved in, or relating to, violations of the International Emergency Economic Powers Act (IEEPA). Through co-operation with inter - national allies or under certain statutory authorities, as the case may be, the United States may also seize and subject to civil forfeiture such assets or property located on the high seas or abroad. 2.2.2 Breaching Sanctions Violations of US economic sanctions laws and regu - lations are primarily civil offences, but there can be criminal penalties for wilful violations. For example, under IEEPA, it is unlawful for a person to violate, attempt to violate, conspire to violate or cause a violation of any licence, order, regulation or prohibition issued under IEEPA. The penalties for such violations include imprisonment for up to 20 years and a fine of up to USD1 million.

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