I'm looking for the guidance that shows the graduated record retention requirements during the period between March 2025 and March 2030. I remember seeing something back when the final rule was published but I can't find it now. I'm looking for how it was worded to update policy documents.

Are you referring to this? https://ofac.treasury.gov/media/933201/download?inline

That is the extension I'm referring to. I saw something that explicitly detailed the transition period of having 10 years of records. Since it has been 5 all these years, we won't have 10 years of records in March of this year. It showed the progression of having 6 years of records in 2026 and 7 years of records in 2027. Maybe I dreamed this up? Maybe it was an ABA interpretation?

You are just not liable for anything before April 24, 2019 going forward and then only in the last ten years after April 24, 2029

Consequently, OFAC may now commence an enforcement action for civil violations of IEEPA- or TWEA- based sanctions prohibitions within 10 years of the latest date of the violation if such date was after April 24, 2019.

Any advice on how to write that into an OFAC Policy? I'm updating the record retention section. It used to say that records were kept for 5 years. I'll update it to 10, but if an examiner wants to test that I won't have data from 10 years ago. I feel like I need to include something about the transition time.

The retention period is 10 years but in no event earlier than April 24, 2019

Thank you!

Will the regulatory freeze affect the implementation the retention from 5 to 10 years or will it continue to be March 12, 2025?

I highly doubt something this trivial will be delayed.

Can someone elaborate as to what information they are keeping for ten years? Alerts / potential hits only - are you extending your retention on other files and systems within the bank that are relevant to your searches? i.e. data files - FULL data files scanned against?

They opened a can of worms and obviously did no forethought on this one.

No can of worms here. Retention only applies to transactions covered under license agreements, etc. and the holding of blocked property. Whether you even do OFAC searches is a business decision and is not related to this record retention rule.


§501.601 Records and recordkeeping requirements.

Except as otherwise provided, every person engaging in any transaction subject to the provisions of this chapter shall keep a full and accurate record of each such transaction engaged in, regardless of whether such transaction is effected pursuant to license or otherwise, and such record shall be available for examination for at least 10 years after the date of such transaction. Except as otherwise provided, every person holding property blocked pursuant to the provisions of this chapter or funds transfers retained pursuant to §596.504(b) of this chapter shall keep a full and accurate record of such property, and such record shall be available for examination for the period of time that such property is blocked and for at least 10 years after the date such property is unblocked.

Can you put in simple English? Some peers are discussing keeping large files of transactions. And not clear as mud...........

It means if it does not involve blocked or held funds or transactions that are conducted specifically under license (https://ofac.treasury.gov/ofac-license-application-page) it does not apply to you. There is no reason to keep any OFAC search records longer than you do now strictly for audit purposes.