In an interim final rule published today, the Office of Foreign Assets Control updated and amended its reporting and penalties regulations, including creating a specific “compliance release” procedure for banks to follow to apply for the release of certain funds blocked and reported to OFAC due to mistaken identity.
Under the rule, OFAC also modified certain reporting requirements related to blocked and rejected transactions, and officially mandated the use of the electronic OFAC Reporting System. Once this rule is effective, on Aug. 8, requests to release funds must be sent via email to [email protected] and include the phrase “31 CFR 501.806—Request for a Compliance Release” in the subject line of the email. Others may continue to request unblocking of property through license applications submitted to OFAC’s licensing division. OFAC is accepting comments on this rule until June 10.
