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Economic Sanctions Risk Assessment Tool

Sanctions Lab provides a comprehensive, efficient, and effective OFAC economic sanctions risk assessment and audit tool developed using proprietary technology and years of economic sanctions and financial crimes compliance expertise.

Benefits of the Sanctions Risk Assessment

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) has identified the sanctions risk assessment as an essential component of a Sanctions Compliance Program (SCP). Completing a sanctions risk assessment enables your company to better understand its inherent and residual sanctions risks, including at key points identified by OFAC such as client on-boarding and during Mergers and Acquisitions (M&A).

Sanctions Complexity

Sanctions compliance is no longer a check-the-box exercise. Conducting a sanctions risk assessment is an essential component of sanctions compliance as identified by OFAC to reduce your risk of violating sanctions. A risk assessment should be a top-to-bottom review and assess how your company interacts with the outside world in an increasingly complex geopolitical environment.

OFAC and Risk Evaluation Frequently Asked Questions

What government agency administers U.S. economic sanctions?

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) administers and enforces most economic and trade sanctions.

What is a sanctions risk assessment?

An OFAC sanction risk assessment is a periodic, holistic review of a company's inherent economic sanctions risks such as those posed by its clients and customers, products, services, supply chain, intermediaries, counter-parties, transactions, and geographic locations. OFAC has identified on-boarding customers and Mergers and Acquisitions (M&A) as presenting "numerous challenges" with respect to OFAC sanctions.

What are the benefits of a sanctions risk assessment?

The Treasury Department's Office of Foreign Assets Control (OFAC) has identified a sanctions risk assessment as an essential component of a sanctions compliance program.

What are economic sanctions?

OFAC economic sanctions generally prohibit U.S. persons and certain non-U.S. persons from transacting or dealing with designated foreign countries and regimes, terrorists, international narcotics traffickers, weapons proliferators, and other threats to the national security, foreign policy or economy of the United States.

Who must comply with OFAC sanctions?

All U.S. companies and many foreign companies must comply with OFAC sanctions.

According to OFAC, "U.S. persons must comply with OFAC regulations, including all U.S. citizens and permanent resident aliens regardless of where they are located, all persons and entities within the United States, all U.S. incorporated entities and their foreign branches. In the cases of certain programs, foreign subsidiaries owned or controlled by U.S. companies also must comply. Certain programs also require foreign persons in possession of U.S.-origin goods to comply."