OFAC advisory clarifies statute of limitations extension for sanctions violations
The US Treasury Department’s Office of Foreign Assets Control (‘OFAC’) has issued guidance on recent legislation that doubled the statute of limitations for certain sanctions violations to ten years, under the International Emergency Economic Powers Act (‘IEEPA’) or the Trading with the Enemy Act (‘TWEA’).
The advisory, published 22 July, says, ‘Prior to the Act’s enactment, civil enforcement actions brought by OFAC under IEEPA or TWEA were subject to the five-year statute of limitations set forth in 28 U.S.C. § 2462. The new ten-year statute of limitations—codified at 50 U.S.C. §§ 1705(d) and 4315(d)—became effective upon the President’s signature on April 24, 2024.’
It adds, ‘This new ten-year statute of limitations applies to any violation that was not time-barred at the time of its enactment. Consequently, OFAC may now commence an enforcement action for civil violations of IEEPA- or TWEA-based sanctions prohibitions within ten years of the latest date of the violation if such date was after April 24, 2019. As set forth in the Act, the commencement of a civil enforcement action includes the issuance of a pre-penalty notice or a finding of violation. To match the new statute of limitations period, OFAC anticipates publishing an interim final rule, with an opportunity to provide comment, extending from five years to ten years the recordkeeping requirements codified at 31 C.F.R. § 501.601. OFAC anticipates that a ten-year recordkeeping requirement would become effective six months after publication of the interim final rule.’
