Marcus,
I am writing to let you know that we received OFAC's acknowledgment letter yesterday, dated October 18, 2023. Our voluntary self-disclosure submission, which was filed on October 6, has been formally received and assigned Case No. VS-2023-04871.
**Nature of the Acknowledgment**
This is a standard form letter confirming receipt of the VSD and advising that OFAC will review the submission. The letter contains the customary caveat that filing a voluntary self-disclosure does not preclude OFAC from pursuing enforcement action, including the imposition of civil monetary penalties. I want to be clear: this is boilerplate language that appears in every acknowledgment letter OFAC issues, regardless of the circumstances, and it should not cause alarm. Its inclusion is procedural, not indicative of OFAC's assessment of this matter.
**Expected Timeline and Next Steps**
From here, we would expect one of two outcomes:
1. OFAC may come back to us with a request for supplemental information before making a determination. This is quite common, particularly in matters involving complex corporate structures like DTI's. 2. Alternatively, OFAC may proceed directly to a determination based on the information already submitted.
Based on current OFAC processing timelines, we would typically expect to hear back within 60 to 120 days, though I should note that timelines can vary and OFAC does not commit to a fixed schedule.
**Maintaining Remedial Measures — Action Items**
In the interim, it is critical that DTI's remedial measures remain fully on track. As you know, these measures were cited as mitigating factors in our VSD filing, and OFAC will view their continued implementation favorably. I would ask that you confirm the following are proceeding as planned:
- **Quarterly re-screening:** The reduction of re-screening intervals from annual to quarterly should be fully operational and documented. - **Enhanced beneficial ownership screening:** The upgrade to the HCS ScreenPro enhanced module, including the incorporation of third-party corporate intelligence data, should be completed on the timeline we discussed. - **Dedicated Sanctions Compliance Officer:** The hiring process for DTI's dedicated SCO position should continue moving forward. If there are any delays on this front, please let me know so we can discuss how to address them.
The substantive value of these measures is significant, but their importance as a signal to OFAC of Dunmore's and DTI's good faith and commitment to compliance cannot be overstated.
**Important — Direct Contact from OFAC**
If OFAC contacts you, anyone else at the Company, or anyone at DTI directly at any point during this process, please refer them to me immediately. Do not provide any information or make any substantive statements to OFAC without consulting Calderwood & Harkness first. All communications with OFAC must be channeled through counsel.
I am attaching a scanned copy of the acknowledgment letter for your records. Please do not hesitate to reach out if you have any questions or if you would like to schedule a call to discuss.
Best regards,
Priya Anand Partner Calderwood & Harkness LLP 400 Park Avenue, 28th Floor New York, NY 10022 Tel: (212) 555-0147 p.anand@calderwoodharkness.com
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