The SEC is increasingly questioning public companies about compliance with U.S. sanctions, as the nation’s blacklist of individuals and entities grows. It has reportedly ramped up comment letters to companies, seeking more details about disclosures related to dealings in countries targeted by U.S. sanctions.
At least 42 companies received letters last year regarding activity in areas subject to sanctions enforced by the Treasury Department’s Office of Foreign Assets Control. That matches the 2017 total, which is up from an average of about 33 during the three prior years. Sanctions-related letters grew from 1.5 percent of SEC comment letters in 2014, to 4.5 percent in 2018.
In recent months, the SEC has sent such letters to companies such as PayPal, Bank of New York Mellon, and Chinese travel-services provider Ctrip.com.
