Industry News
OFAC's Extended Statue of Limitations
TweetJul. 23, 2024
By:
Marvin E. McPherson

OFAC published guidance regarding the extension of the statute of limitations for civil and criminal violations. The guidance comes about due to the enactment of the 21st Century Peace through Strength Act, Pub. L. No. 118-50, div. D (the “Act”), signed into law April 24, 2024. Section 3111 of the Act extends the statute of limitations for civil and criminal violations of the International Emergency Economic Powers Act (IEEPA) or the Trading with the Enemy Act (TWEA) from five years to 10 years. The new 10-year statute of limitations applies to any violation that was not time-barred at the time of its enactment.
OFAC’s guidance emphasizes the need for U.S. entities to extend their record keeping from 5 years to 10 years. Other ramifications include an expanded scope of due diligence for companies engaged in mergers and acquisitions, and other related activities to account for the longer limitations period.
The guidance also suggests that OFAC will amend its records and recordkeeping requirements, codified at 31 C.F.R Part 501.601, to correspond to the ten-year statute of limitations
Stay informed about these regulatory updates for compliance in the evolving sanctions landscape. If you have any questions surrounding proposed rule or submitting comments, please contact any attorney at Barnes Richardson and Colburn.