OFAC-OFSI announce partnership

OFAC and OFSI released guidance following their latest in-person strategic exchange. As the two largest economic sanctions authorities globally, OFAC and OFSI are deepening their partnership to ensure sanctions remain an effective foreign policy tool while maintaining clarity and compliance for the private sector. The new publications, including a comparative overview of U.S. and UK sanctions regimes, reflect their commitment to coordinated enforcement, modernized systems, and shared approaches to emerging threats. Key Takeaways: 1. New Guidance Released – U.S. and UK published comparative overview to help private sector understand obligations under both regimes 2. Enhanced Collaboration Focus – OFAC and OFSI identifying shared opportunities to improve sanctions efficacy, including: - Rapid sanctions escalation mechanisms - Lessons from Russia/Ukraine response applied to other scenarios - Shadow fleet targeting and disruption strategies - Structured sanctions regime dismantling (e.g., Syria) 3. Technology & Modernization – Both agencies investing in advanced impact analysis tools, AI-supported compliance systems, and improved platforms 4. Enforcement Alignment – Similar strict liability standards and voluntary disclosure policies (OFAC: 50% penalty reduction; OFSI: up to 30%) 5. Next Steps – Partnership continues with fall 2026 exchange in Washington DC