OFAC Due Diligence Questions


Summary

This template of due diligence questions may be used to perform due diligence interviews regarding a company’s compliance with sanctions programs established by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). This template includes practical guidance, drafting notes, and optional clauses. OFAC oversees and enforces economic sanctions against certain countries, regions, entities, and individuals. Significant direct penalties can be imposed for violations of the OFAC sanctions, including on a strict-liability basis (i.e., regardless of fault or intent). Further, parties participating in a securities offering, particularly the issuer and the underwriters in a public offering, bear additional risk that undisclosed sanctions or violations could lead to shareholder litigation and liability or securities laws violations. Additional OFAC due diligence is typically performed if an issuer is a non-U.S. company and the other offering participants (such as the ...