A RECENT Deloitte report analyzing sanction violation settlements issued by the Office of Foreign Assets Control (OFAC), a branch of the US Department of the Treasury, presents a sobering picture for companies based in the Philippines, especially considering the magnitude of the potential financial penalties. Just within the period of the analysis (between January 2022 and April 2024), 34 settlements with the OFAC amounted to over $1.6 billion in financial penalties. This figure only scratches the surface, as it does not encompass the additional costs of organizational disruption or reputational damage.

Impact on Philippine businesses