Federal Court GuidesOFAC & Sanctions › Self-disclosure
Sanctions & designations

The discount for going first

OFAC's own guidelines cut penalty exposure substantially for qualifying voluntary self-disclosures — the rare enforcement regime that prices honesty explicitly. The decision is still not automatic, and botched disclosures forfeit the credit while keeping the exposure.

Discuss your caseCall (202) 999-3631Direct line to the firm — no intake bots. Email info@dcfederallitigation.com if you prefer to write.

What 'voluntary' requires

The credit belongs to disclosures OFAC learns from you first — before any third-party report, blocked-transaction filing by a bank, or investigation reaches the conduct. The clock races bank compliance departments, whose own reports are involuntary discovery from your side of the table. Qualifying also means complete: partial disclosures that unravel read worse than silence.

The decision, run properly

  1. Privileged internal review first — scope, count, and value the apparent violations before anyone outside the privilege hears the word 'disclosure.'
  2. The race assessment: has a bank already filed? Is a counterparty cooperating elsewhere? Voluntariness dies quietly and early.
  3. Initial notice, then the full report — OFAC's process allows a prompt short-form disclosure followed by the investigated submission, preserving the credit while the facts assemble.
  4. Remediate in parallel — the settlement you eventually sign prices the program you built meanwhile.

Questions people actually ask

Our bank blocked the wire. Is disclosure already pointless?

The bank's report covers what the bank saw — broader conduct it couldn't see may still be voluntarily disclosable. The scoping review answers what's left to win.

Does VSD mean no penalty?

It means materially reduced exposure under published guidelines — cases still settle at real numbers when aggravating factors dominate. The math is case-specific and run before disclosing, not after.

Is the internal investigation discoverable later?

Structured under privilege from the first interview, its protection is defensible; structured casually, it becomes the government's best exhibit. This is why the review precedes the decision.