About GiveCrypto's Sanctions Compliance Program.
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About GiveCrypto's Sanctions Compliance Program
1. Corporate Sanctions Compliance Commitment
GiveCrypto (“GiveCrypto”), is committed to conducting its business with honesty and integrity, and in full compliance with all applicable laws, including laws that prohibit dealings with certain individuals, organizations, and countries that are subject to embargoes or sanctions. The purpose of its Sanctions Compliance Program (“Program”) is to demonstrate that commitment and to educate GiveCrypto personnel regarding the need for compliance with sanctions imposed by the United States.
2. Sanctions Compliance Program
The Office of Foreign Assets Control (“OFAC”), an agency of the U.S. Department of the Treasury, administers and enforces U.S. economic sanctions programs against targeted foreign governments, individuals, groups and entities in accordance with national security and foreign policy. OFAC had not previously published guidance addressing the essential elements for an effective sanctions’ compliance program (“SCP”). On May 2, 2019, however, OFAC published such guidance, entitled “A Framework for OFAC Compliance Commitments” (“OFAC Framework”).
It is the intent of GiveCrypto that this Program comports with the guidance in the OFAC Framework. This Program sets forth guidelines with which GiveCrypto and its personnel who deal with business activities must comply. No transaction contrary to this Program shall be executed without the prior approval of the Compliance Officer. Violation of sanctions could result in severe consequences for GiveCrypto. Failure to adhere to this Program also may subject GiveCrypto personnel to disciplinary action, up to and including termination.
GiveCrypto ’s Sanctions Program includes the following components:
- Management Commitment - GiveCrypto has provided the Compliance Officer with the requisite authority and autonomy and a direct reporting line to the board. The Compliance Officer has received Sanctions Compliance training by outside International Trade counsel and consults with outside counsel, as appropriate.
- Risk Assessment - GiveCrypto conducts risk assessments periodically to identify any potential risks and promptly addresses any identified risks by updating the Program.
- Internal Controls - GiveCrypto screens all transactions against OFAC lists and has requires that transactions be approved by the Compliance Officer.
- Testing and Auditing - GiveCrypto reviews its OFAC procedures through periodic internal and/or external audits and would promptly address any identified gaps by updating the Program.
- Training - GiveCrypto’s training program accomplishes the following: (i) provides job-specific knowledge; (ii) communicates the compliance responsibilities for each employee; and (iii) holds employees accountable for completion of sanctions compliance training through assessments.
3. Overview of U.S. Sanctions
The U.S. has sanctions programs that prohibit U.S. persons and, in some instances, foreign persons from conducting or facilitating transactions with designated countries, individual parties, aircraft and marine vessels. These programs also frequently block the assets of the sanctioned party. The U.S. has created such programs to implement foreign policy and national security objectives.
The U.S. has made increased use of sanctions programs during the past ten years. The U.S. sanctions programs regarding Iran, Venezuela and Ukraine/Russia have been particularly active. The U.S. currently has more than twenty-five sanctions programs and has more than 15,000 sanctioned parties. The sanctions programs are primarily implemented by OFAC.
Persons subject to OFAC jurisdiction include:
- U.S. citizens and permanent resident aliens (wherever located);
- Companies organized in the U.S. including foreign branches;
- Individuals and entities located in the U.S.; and
- Companies organized outside the U.S. by U.S. persons under certain sanctions programs (Iran, Cuba and North Korea).
When OFAC imposes a trade embargo on an entire country or region, the embargo applies to all businesses and individuals in that country. OFAC sanctions companies, individuals, aircraft and ships from other countries by placing the entity or individual on a list. The primary list is the Specially Designated Nationals and Blocked Persons (“SDN”) List. If a person is on the SDN list, a U.S. person is prohibited from conducting any transactions with that person. There are several other OFAC lists, which may impose fewer restrictions. The list of embargoed countries and prohibited persons can change over time and frequently does so.