Reporting and Record-keeping Requirements

Five-year Retention Requirement

You must retain a record of all transactions in which you “engage” and which are subject to OFAC rules. The retention period is five years after the date of the transaction. (31 CFR 501.601) If you block property pursuant to OFAC requirements, you must keep a record of the property for at least five years after the date you unblock the property. (31 CFR 501.601) Records you retain must be a “full and accurate record” of the transaction engaged in or the property you blocked. The regulations do not specify any required components.

The records you maintain under this requirement must be produced upon request from the Director, Office of Foreign Assets Control. (31 CFR 501.602)

Blocked property reports

If you block property pursuant to OFAC requirements, you must report the blocking to OFAC within ten business days from the date the property becomes blocked. [31 CFR 501.603(b)(1)(i)] The report must describe the following:

  • The owner or account party,
  • The property,
  • The location of the property,
  • Any existing or new account number or similar reference necessary to identify the property,
  • The actual or estimated value,
  • The date property was blocked, • The name and address of the holder (the person holding the blocked property),
  • The name and telephone number of a contact person.

If the blocking involves the proceeds of a payment or fund transfer, you must include a photocopy of the payment or transfer instructions you receive and confirm that the payment has been deposited into a new or existing blocked account which is labeled as such and is established in the name of or contains a means of clearly identifying the interest of the individual or entity subject to blocking. [31 CFR 501.603(b)(1)(ii)]

In addition to reporting at the time you block property, you must also make an annual report of blocked property. This report is a list of all the blocked property you hold as of June 30 of a given year and must be filed no later than September 30 of that year. [31 CFR 501.603(b)(2)(i)] You must use Form TDF 90-22.50, Annual Report of Blocked Property, a copy of which can be obtained by calling OFAC’s fax-on-demand service at (202)622-0077 or by downloading the form from the OFAC website.

[31 CFR 501.603(b)(2)(ii)]

Rejected Fund Transfers Reports

The following reporting rules apply when you reject a fund transfer without blocking any property.

First, you must file a report within ten business days of your rejection of the fund transfer. [31 CFR 501.604(c)] You must send the report to the Office of Foreign Assets Control, Compliance Programs Division, U.S. Treasury Department, 1500 Pennsylvania Avenue NW—Annex, Washington, DC 20220. [31 CFR 501.604(e)]

Second, the report must include the name and address of the transferee financial institution (you), the date of the transfer, the amount of the payment transfer, and a photocopy of the payment or transfer instructions received. The report must also state the basis for the rejection of the transfer instructions and the name and telephone number of a contact person at the transferee financial institution from whom compliance information may be obtained. [31 CFR 501.604(d)]

OFAC provides the following examples of situations where you might reject fund transfers.
  • Where the transfer instructions reference a blocked vessel but where none of the parties or financial institutions involved in the transaction is a blocked person.
  • Sending funds to a person in Iraq. • Transferring unlicensed gifts or charitable donations from the Government of Syria To a U.S. person.
  • Crediting Iranian accounts on the books of a U.S. financial institution.
  • Making unauthorized transfers from U.S. persons to Iran or the Government of Iran.

[31 CFR 501.604(b)]

Reports on Litigation, Arbitration, and Dispute Resolution Proceedings

You must also report to OFAC when you become involved in a lawsuit, an arbitration proceeding, or some other form of binding dispute resolution proceeding relating to your blocking of funds under OFAC requirements. [31 CFR 501.605(a)]

Specifically, you must provide notice of the proceedings upon their commencement or upon submission or receipt of initial documents [31 CFR 501.605(a)(1)] and submit copies of all pleadings, motions, memoranda, exhibits, stipulations, correspondence, and proposed orders or judgments (including any proposed final judgment or default judgment) submitted to the court or other adjudicatory body and all orders, decisions, opinions, or memoranda issued by the court. (This second requirement does not apply to discovery request or responses, documents filed under seal, or requests for procedural action not seeking action dispositive of proceedings.) This report and material must be sent to the Chief Counsel, Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW—Annex, Washington, DC 20220. The report and material must be submitted within ten days of filing, submission, or issuance.

[31 CFR 501.605(a)(2)]