In “Navigating an Increasingly Complex Sanctions Landscape, Part 2: Compliance Programs and Remediation” (15 July 2020, FCPA Compliance Report), Adam Frey and Eric Lorber highlight how compliance professionals can navigate an increasingly complex sanctions landscape, providing some best practices for sanctions compliance programs. Additionally, they discuss what happens if there is a compliance failure by means of a sanctions breach.
According to Adam, “In terms of responsibility, at the end of the day it is up to every person in the organization to be aware of and own the sanctions risk of their business activity or their job function. The goal is really for the first line of defense to internalize the importance and the need for sanctions compliance and the sanctions risk in the same way they do for credit risk and other types of operational risks that they own. It is tone from the top or rather tone from management that is really critical in this regard.”
Regarding a sanctions breach, Eric notes that being proactive is key. OFAC and regulatory authorities look for proactivity. According to Eric, “It is signaling, ‘we are taking this seriously.’ It’s very much a sort of a signal that we are on your side, enforcement agencies and regulatory authorities.”