OFAC Issues Guidance on Extension of U.S. Sanctions Statute of Limitations

As readers of Enforcement Edge are aware, on April 24, 2024, President Biden signed into law the 21st Century Peace through Strength Act (the Act), which extends the statute of limitations for the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) from five years to 10 years. As a result of the Act, the statute of limitations for U.S. sanctions violations has now become 10 years for both civil and criminal actions.

On July 22, 2024, the U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC) issued guidance on the Act’s effect, stating that “OFAC may now commence an enforcement action for civil violations of IEEPA- or TWEA-based sanctions prohibitions within 10 years of the latest date of the violation if such date was after April 24, 2019.” In practical terms, this means that the original five-year limitations period would apply to activities occurring before April 24, 2019 (i.e., five years before the Act expanded the limitations period), and the new 10-year period would apply to activities on or after that date. OFAC also noted that it anticipates publishing an interim final rule to extend the recordkeeping requirements to 10 years, which would take effect six months after the publication of the interim final rule.

For questions about the Act, OFAC’s guidance, or other export controls or sanctions matters, contact the authors or any of their colleagues in Arnold & Porter’s White Collar Defense & Investigations or Export Control & Sanctions practice groups.

© Arnold & Porter Kaye Scholer LLP 2024 All Rights Reserved. This blog post is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.