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31 CFR 501.604

Requires US persons, including financial institutions, to report sanctions-related rejected transactions to OFAC within 10 business days, providing key transaction, counterparty, and legal authority details.

Rule Overview

Jurisdiction: United States

Regulator: OFAC

Topic: Risk Management

31 CFR 501.604
Overview
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Who must report: Any US person, including financial institutions, that rejects a transaction because processing it would violate OFAC sanctions requirements, even if the transaction is not blocked.

Covered transactions: Includes wire transfers, trade finance, securities transactions, checks, foreign exchange, and purchases or sales of goods or services.

Reporting deadline: A report must be filed with OFAC within 10 business days of rejecting the transaction.

Report contents: Reports must include key details about the rejected transaction, involved parties, any sanctions target involved, transaction value, supporting documentation, and the legal authority for the rejection.

Filing method: Reports must generally be submitted electronically through OFAC’s Reporting System (ORS). Alternative submission methods are allowed only in limited circumstances with OFAC approval.

Confidentiality: Information submitted to OFAC may be protected from public disclosure under applicable FOIA exemptions.

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