Part III - Compliance Failures, Sanctions Enforcement, and Reporting Requirements Hypothetical Same facts as set out in Part I and Part II However, this time the transaction is not automatically flagged as a potential sanctions hit in the bank's systems because the spelling of Tomaghelli is slightly different and is spelled as "Tomadhelli". The pending payment is processed by the bank without any sanctions compliance flags raised or compliance review. The payment is later identified during a regularly scheduled sanctions compliance audit. After review of the payment, you determine that the beneficiary is the same Tomaghelli as the individual identified on the SDN List and processing the payment was an apparent violation of OFAC regulations. Questions Which OFAC regulations did the bank apparently violate by processing a payment for which Tomaghelli was the beneficiary? What are the potential civil and criminal penalties for the bank's processing of the payment? What remedial measures might you recommend be implemented given the misspelling of Tomaghelli was not caught by the bank's systems and the payment was never flagged for review? Explain in detail your evaluation of the payment under OFAC's Economic Sanctions Enforcement Guidelines? What additional information might you need or want to assist in your evaluation of OFAC's Enforcement Guidelines. Would you recommend that the bank voluntarily self-disclose the matter to OFAC? Explain why or why not. Would you recommend that the bank voluntarily self-disclose the matter to DOJ? Explain why or why not. If the payment was the only problematic payment identified during the audit, does that change your recommendation? Explain why or why not. If 100 other problematic payments totaling approximately $1,200,000 were identified during the audit because the bank's systems did not catch misspellings of other SDN names, does that change your recommendation? Explain why or why not. If bank managers knew about a systems compliance gap related to the potential failure of detecting misspelled SDN names from a past audit and they did not implement any remedial measures to close the gap, does your recommendation change? Explain why or why not. If the payment had been flagged while pending and it was determined that the bank could not process the payment due to Tomaghelli's interest in the payment, what do you do? Are there any OFAC reporting or other requirements