Interactive Brokers Settles with OFAC for $11.8 Million for Violations of Multiple Sanctions Programs

Strategic Insights -

Interactive Brokers LLC, a globally active electronic brokerage firm, has agreed to remit $11,832,136 to resolve its potential civil liability for 12,367 apparent violations of multiple U.S. sanctions programs. The violations, spanning from July 15, 2016 to January 31, 2024, implicated nearly every category of U.S. economic sanctions, including those targeting Iran, Cuba, Syria, Crimea, Russia, and China. The firm's apparent violations included providing trade execution, clearing, and settlement services to over 200 accountholders in comprehensively sanctioned jurisdictions, processing customer funds transfers to blocked Russian financial institutions, and providing margin lending to Russian Federation-based customers.

Key Takeaways:

  • Interactive Brokers LLC agreed to pay $11,832,136 to resolve 12,367 apparent violations of multiple U.S. sanctions programs.
  • The violations spanned from July 15, 2016 to January 31, 2024, and implicated nearly every category of U.S. economic sanctions.
  • The firm provided trade execution, clearing, and settlement services to over 200 accountholders in comprehensively sanctioned jurisdictions.
  • Interactive Brokers processed 259 customer funds transfers to accounts at Russian financial institutions previously designated under Executive Order 14024.
  • The firm also provided margin lending to Russian Federation-based customers, enabling 66 margin loans between April and December 2023.
  • Interactive Brokers failed to block transactions for individuals previously designated under the Venezuela and Syria sanctions programs.
  • The firm's conduct undermined the policy objectives of multiple sanctions programs by allowing sanctioned individuals and entities to access the U.S. financial system.
  • Interactive Brokers invested more than $10 million in remedial measures and demonstrated significant cooperation during the multi-year investigation.

Statistics:

  • Financial penalty: $11,832,136
  • Number of apparent violations: 12,367
  • Duration of violations: July 15, 2016 to January 31, 2024
  • Number of accountholders in comprehensively sanctioned jurisdictions: over 200
  • Number of customer funds transfers to blocked Russian financial institutions: 259
  • Number of margin loans to Russian Federation-based customers: 66
  • Amount invested in remedial measures: over $10 million

Sources:

  • U.S. Department of the Treasury's Office of Foreign Assets Control (https://ofac.treasury.gov/media/934501/download?inline)
  • OFAC's Economic Sanctions Enforcement Guidelines (https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-501/appendix-Appendix%20A%20to%20Part%20501)
  • Interactive Brokers Settles with OFAC for $11.8 Million for Violations of Multiple Sanctions Programs (http://blog.volkovlaw.com/2025/07/interactive-brokers-settles-with-ofac-for-11-8-million-for-violations-of-multiple-sanctions-programs/)