NEWSLETTER-2019-metin

388 NEWSLETTER 2019 ment response to apparent violations of the US economic sanctions programs. The enforcements may include: • Referring cases to the Department of Justice for criminal investigation; • Issuing civil penalties; and • Issuing cautionary letters or taking no action where there is insufficient evidence. Penalties for violations of US sanctions programs, depending on their underlying authorizing legislation include, for example: • Criminal penalties, such as fines ranging up to $1 million per violation and the possibility of imprisonment for up to 20 years; and • Civil penalties. Generally, IEEPA supported US sanctions programs can impose civil penalties up to the greater of $302,584 or twice the amount of the underlying transaction for each violation. OFAC civil penalties’ varies based on, amongst other things, the egregiousness of the violation, and whether the party voluntarily self- disclosed. Secondary Sanctions Secondary sanctions apply to non-US persons for non-US con- duct that occurs outside of the US jurisdiction. Secondary sanctions are a relatively new kind of sanctions that have been implemented frequently over the past five years, particularly relating to Iran. These kinds of sanctions supplement other sanctions programs by targeting non-US persons (primarily foreign financial institutions and foreign sanctions evaders) who do business with individuals, regimes, and organizations in Iran. In the case of Iran, secondary sanctions only apply to transactions involving SDNs, oil, energy, automotive, shipbuilding/shipping, pre- cious metals, and insurance. For example, if the volume of transactions