WASHINGTON: As Congress considers a controversial nuclear deal with Iran, the US Treasury agency charged with implementing related financial sanctions is at risk of being overwhelmed by its expanding mission, former employees and lawyers who deal with the office say.
The agency, the Office of Foreign Assets Control, is responsible for enforcing a broad array of sanctions and for licensing American companies wishing to do business with sanctioned countries. Both roles will be especially critical if some restrictions are relaxed under the proposed nuclear agreement with Iran.
But a growing reliance on sanctions to address situations as varied as Russia’s incursions into Ukraine, cyberttacks on US businesses, and jihadist financing has increased pressure on the agency, which is being asked to police a bigger beat while staffing and budgets have not kept up.
Dozens of OFAC officials have left the agency in the past four years for better-paying jobs at law offices, consulting firms and banks, which have aggressively built up their compliance departments in response to big fines for sanctions violations.
“OFAC is left in a position where they can only deal with what’s five inches in front of their faces,” said Erich Ferrari, a Washington-based sanctions lawyer.
The agency has prided itself on the firepower of its small and highly specialized staff of about 200, who collectively oversee more than 35 sanctions programs. But the size of the agency has also meant that each departure has an outsized impact, former officials say.
“OFAC is a small organization that is among the leanest, most productive I’ve seen anywhere in government,” said Elizabeth Rosenberg, a former senior adviser at the Treasury Department who left in 2013. “There’s little redundancy.”
The most high-profile recent departures have included Lorraine Lawlor, OFAC’S former chief of compliance programs who left in 2012 for Wells Fargo ; Sean Thornton, former chief counsel who joined French bank BNP Paribas in 2014; Eytan Fisch, former assistant director for policy who left this year for law firm Skadden; and Adam Smith, former senior adviser to the director who left in July for law firm Gibson Dunn.
At least 25 other sanctions compliance officers, lawyers, and others have left OFAC since 2011 for companies including HSBC, Bank of America, Western Union, PayPal, and Credit Suisse, according to a review of LinkedIn profiles.
To be sure, the recruitment of regulators by business is a constant in Washington, and there is no indication that the rate of departures at OFAC is greater than at other agencies. But the impact is particularly acute given that the agency’s staff and budget has grown little in recent years, while its workload has increased.
At one point, OFAC staff were holding up to five happy hours each month for departing colleagues, said David Brummond, a former sanctions adviser who left OFAC in 2014 and is now with law firm DLA Piper.
“It just became funny,” Brummond said. “You had to schedule it into your social calendar.”
Treasury did not provide details on the agency’s staffing levels or comment on whether the agency is short-staffed for the work it does.
“OFAC is comprised of a staff of talented individuals, and our sanctions have become an increasingly effective national security and foreign policy instrument thanks in large measure to the careful work of our staff,” the Treasury said in a statement. BIGGER PAYDAY In some ways the problems faced by OFAC are born of the US government’s success, in winning high-profile penalties against banks for prohibited transactions with Iran, Sudan and other sanctioned countries.
Banks have responded by beefing up compliance departments and tapping senior OFAC officials to lead them. For example, shortly after BNP Paribas agreed to pay US authorities $8.9 billion in 2014 to resolve claims it violated sanctions, it hired Thornton.
Some of the departed officials had served for decades and took with them considerable institutional knowledge of how sanctions have evolved.
OFAC employees, whose salaries top out at around $160,000 per year, can easily double or triple their pay in the private sector. Senior OFAC officials can command up to $1.2 million per year, said a senior compliance official at a large US bank.
Since 2011, the United States has implemented 29 sanctions-related executive orders, according to a Reuters tally, almost double the number from 2006 to 2010 when there were 16 such orders.
OFAC staff have numbered about 170 to 200 for at least the last five years, former officials say. In fiscal 2013, the last year for which information is public, OFAC had a budget of about $31 million, compared to $29 million in 2009, documents show.
Sanctions have also become increasingly complex. The measures imposed on Russia in 2014, sanctions experts say, are especially intricate and target specific activities rather than broad categories of business. And while sanctions ban most US trade with Iran, they include exceptions that allow humanitarian, medical and other business dealings. Such business often relies on the granting of licenses, which lawyers said can take up to a year or more to acquire.
Ferrari said a license he requested for an Iranian animal shelter to raise funds in the United States took 18 months and three separate applications before being granted.
Businesses sometimes give up in frustration after long waits for OFAC’s go-ahead or guidance, lawyers say.
That could present a risk for implementation of the Iran deal, experts say. Without clear and quick guidance, businesses and banks will likely pull back from trade with Iran, even in areas permitted if sanctions are eased. In turn, if Iran did not get the relief it expected from eased sanctions, it would have less incentive to abide by the terms of the deal.
Brummond said it is already a challenge to get agency staff on the phone to give guidance on new sanctions language and what direction regulations might take.
“Clients want the answer whether or not OFAC answers the phone. I try to explain to the client that I’ve left my fourth voice mail,” Brummond said. “I know who I’m calling on the other side, and I know how buried they are.”
US agency overseeing sanctions faces brain drain, added work
US agency overseeing sanctions faces brain drain, added work

Bangladesh opens trial of ex-PM Hasina for crimes against humanity

- Hearing broadcast live for first in special tribunal’s history
- Former home minister, ex-police chief ordered to be in court for second hearing on June 16
DHAKA: Bangladeshi prosecutors on Sunday opened the trial of fugitive former Prime Minister Sheikh Hasina, who is charged with orchestrating last year’s deadly crackdown on student-led protests.
Peaceful demonstrations, triggered by the reinstatement of a quota system for the allocation of civil service positions, began in early July 2024 but two weeks later they were met with a communications blackout and a violent crackdown by security forces.
In early August, as protesters defied a nationwide curfew, Hasina resigned and fled the country, ending 15 years in power of her Awami League party-led government.
“She unleashed various law enforcement and intelligence agencies against them (the protesting students) … They slaughtered the agitating students, injured them and committed crimes against humanity,” Mohammad Tajul Islam, chief prosecutor at Bangladesh’s domestic International Crimes Tribunal, told the court in his opening speech.
He charged the 77-year-old with “incitement, aiding and abetting, involvement in the commission of the crimes of murder, attempted murder, torture and other inhumane acts as part of the widespread and systematic attacks on innocent unarmed students and the public.”
The UN’s human rights office concluded in February that between July 15 and Aug. 5, 2024, the former government and its security and intelligence apparatus, together with “violent elements” linked to the Awami League, “engaged systematically in serious human rights violations and abuses in a coordinated effort to suppress the protest movement.”
It estimated that at least 1,400 people were killed during the protests, the majority by bullets from military rifles.
ICT investigators have collected video footage, audio clips, records of helicopter and drone movements, as well as statements from victims of the crackdown as part of the probe.
They also “seized records of telephonic conversations of Sheikh Hasina, in which she repeatedly confirmed that she ordered all the state agencies to eliminate innocent civilians peacefully protesting for a fair demand, using helicopters, drones and APCs (armored personnel carriers),” Islam said.
Sunday’s hearing was broadcast live for the first in the ICT’s history.
“The court accepted the charges against Sheikh Hasina, former Home Affairs Minister Asaduzzaman Khan Kamal and former police chief Chowdhury Abdullah Al-Mamun. There are five charges against them and the court accepted all five charges. We presented the charges through live broadcast before the nation,” Islam told reporters after the hearing.
Al-Mamun is the only accused who has been detained while the ex-home minister is in hiding and Hasina remains in self-imposed exile in neighboring India.
The next hearing is scheduled to take place on June 16. The tribunal ordered all three accused to be presented before the court.
The International Crimes Tribunal was established by Hasina in 2010 to investigate crimes committed by the Pakistani army and its loyalists during Bangladesh’s independence war in 1971.
Over the years, it grew to be widely seen as the Hasina government’s tool for eliminating political rivals.
Zelensky says Ukraine will send a delegation to Istanbul for talks with Russia on Monday

- In a statement on Telegram, Zelensky said that Defense Minister Rustem Umerov will lead the Ukrainian delegation, stating "we are doing everything to protect our independence, our state and our people”
KYIV: Ukraine will send a delegation to Istanbul for a new round of direct peace talks with Russia on Monday, President Volodymyr Zelensky said, even as Russia pounded Ukraine with a missile strike that killed 12 soldiers and the biggest drone assault of the three-year war.
In a statement on Telegram, Zelensky said Sunday that Defense Minister Rustem Umerov will lead the Ukrainian delegation. “We are doing everything to protect our independence, our state and our people,” Zelensky said.
Ukrainian officials had previously called on the Kremlin to provide a promised memorandum setting out its position on ending the war before the meeting takes place. Moscow had said it would share its memorandum during the talks.
Russian strike hits an army unit
Russia launched the biggest number of drones on Ukraine since the full-scale invasion three years ago, Ukraine’s air force said Sunday. The air force said 472 drones were launched over Ukraine.
Russian forces also launched seven missiles alongside the barrage of drones, said Yuriy Ignat, head of communications for the Ukrainian air force. Earlier Sunday, Ukraine’s army said at least 12 Ukrainian service members were killed and more than 60 were injured in a Russian missile strike on an army training unit.
The strike occurred at 12:50 p.m. (0950 GMT), the statement said, emphasizing that no formations or mass gatherings of personnel were being held at the time. An investigative commission was created to uncover the circumstances around the attack that led to such a loss in personnel, the statement said.
The training unit is located to the rear of the 1,000-kilometer (620-mile) active front line, where Russian reconnaissance and strike drones are able to strike.
Ukraine’s forces suffer from manpower shortages and take extra precautions to avoid mass gatherings as the skies across the front line are saturated with Russian drones looking for targets.
“If it is established that the actions or inaction of officials led to the death or injury of servicemen, those responsible will be held strictly accountable,” the Ukrainian Ground Forces’ statement said.
Meanwhile, Ukrainian drone strikes were reported deep in Russian territory Sunday, including in the Siberian region of Irkutsk, more than 4,500 kilometers (2,800 miles) east of Moscow.
It is the first time that a Ukrainian drone has been seen in the region, local Gov. Igor Kobzeva said, stressing that it did not present a threat to civilians.
Other drone strikes were also reported in Russia’s Ryazan region and the Arctic Murmansk region. No casualties were reported.
Northern pressure
Russia’s Ministry of Defense said Sunday that it had taken control of the village of Oleksiivka in Ukraine’s northern Sumy region. Ukrainian authorities in Sumy ordered mandatory evacuations in 11 more settlements Saturday as Russian forces make steady gains in the area.
Speaking Saturday, Ukraine’s top army chief, Oleksandr Syrskyi, said that Russian forces were focusing their main offensive efforts on Pokrovsk, Toretsk and Lyman in the Donetsk region, as well as the Sumy border area.
Russia and Ukraine step up the war on eve of peace talks

- Ukraine attacked Russian nuclear-capable long-range bombers at a military base deep in Siberia on Sunday, a Ukrainian intelligence official said
MOSCOW/KYIV: On the eve of peace talks, Ukraine and Russia sharply ramped up the war with one of the biggest drone battles of their conflict, a Russian highway bridge blown up over a passenger train and an ambitious attack on nuclear-capable bombers deep in Siberia.
After days of uncertainty over whether or not Ukraine would even attend, President Volodymyr Zelensky said Defense Minister Rustem Umerov would sit down with Russian officials at the second round of direct peace talks in Istanbul on Monday.
The first round of the talks more than a week ago yielded the biggest prisoner exchange of the war — but no sense of any consensus on how to halt the fighting.
Amid talk of peace, though, there was much war.
At least seven people were killed and 69 injured when a highway bridge in Russia’s Bryansk region, neighboring Ukraine, was blown up over a passenger train heading to Moscow with 388 people on board. No one has yet claimed responsibility.
Ukraine attacked Russian nuclear-capable long-range bombers at a military base deep in Siberia on Sunday, a Ukrainian intelligence official said, the first such attack so far from the front lines more than 4,300 km (2,670 miles) away.
The official said the operation involved hiding explosive-laden drones inside the roofs of wooden sheds and loading them onto trucks that were driven to the perimeter of the air bases.
A total of 41 Russian warplanes were hit, the official said.
Russia acknowledges air base attacks, says fires put out
Ukraine did not tell the Trump administration about the attack in advance, Axios reporter Barak Ravid said on X, citing an unnamed Ukrainian official.
Russia’s Defense Ministry acknowledged on the Telegram messaging app that Ukraine had launched drone strikes against Russian military airfields across five regions on Sunday.
It said the attacks repelled the assaults in all but two regions — Murmansk in the far north and Irkutsk in Siberia — where “the launch of FPV drones from an area in close proximity to airfields resulted in several aircraft catching fire.”
The fires were extinguished without casualties. Some individuals involved in the attacks had been detained, the ministry said.
Russia launched 472 drones at Ukraine overnight, Ukraine’s air force said, the highest nightly total of the war so far. Russia had also launched seven missiles, the air force said.
Russia said it had advanced deeper into the Sumy region of Ukraine, and open source pro-Ukrainian maps showed Russia took 450 square km of Ukrainian land in May, its fastest monthly advance in at least six months.
US President Donald Trump has demanded Russia and Ukraine make peace and he has threatened to walk away if they do not — potentially pushing responsibility for supporting Ukraine onto the shoulders of European powers — which have far less cash and much smaller stocks of weapons than the United States.
According to Trump envoy Keith Kellogg, the two sides will in Turkiye present their respective documents outlining their ideas for peace terms, though it is clear that after three years of intense war, Moscow and Kyiv remain far apart.
Putin ordered tens of thousands of troops to invade Ukraine in February 2022 after eight years of fighting in eastern Ukraine between Russian-backed separatists and Ukrainian troops. The United States says over 1.2 million people have been killed and injured in the war since 2022.
Trump has called Putin “crazy” and berated Zelensky in public in the Oval Office, but the US president has also said that he thinks peace is achievable and that if Putin delays then he could impose tough sanctions on Russia.
In June last year, Putin set out his opening terms for an immediate end to the war: Ukraine must drop its NATO ambitions and withdraw all of its troops from the entirety of the territory of four Ukrainian regions claimed and mostly controlled by Russia.
Ukrainian negotiators in Istanbul will present to the Russian side a proposed roadmap for reaching a lasting peace settlement, according to a copy of the document seen by Reuters.
According to the document, there will be no restrictions on Ukraine’s military strength after a peace deal is struck, no international recognition of Russian sovereignty over parts of Ukraine taken by Moscow’s forces, and reparations for Ukraine.
The document also stated that the current location of the front line will be the starting point for negotiations about territory.
Russia currently controls a little under one fifth of Ukraine, or about 113,100 square km, about the same size as the US state of Ohio.
Russian strike kills 12 Ukrainian soldiers during training: Kyiv

- Kyiv did not say where the strike took place, but stressed the soldiers were not taking part in a “mass gathering” and most were in their shelters during the attack
KYIV: A Russian missile strike on a Ukrainian army training area killed at least 12 soldiers and wounded dozens more Sunday, Kyiv said, in a rare admission of its military losses.
Kyiv did not say where the strike took place, but stressed the soldiers were not taking part in a “mass gathering” and most were in their shelters during the attack.
The Ukrainian army has in recent weeks faced pressure to investigate what some see as glaring lapses in ensuring the safety of training soldiers.
Six soldiers training close to the border were killed by a Russian strike last month, in what one Ukrainian opposition politician called a “crime” by army leadership.
“Today, on June 1, the enemy launched a missile strike on the location of one of the training units of the Ukrainian army,” the Ukrainian army said in a statement.
“As of 12:50 p.m. (0950 GMT), 12 people are known to have been killed and more than 60 wounded.”
“If it is established that the deaths and injuries of the servicemen were caused by the actions or inaction of officials, those responsible will be brought to strict accountability,” it added.
Separately on Sunday, the Russian army said it had captured another village in Ukraine’s northern Sumy region, where Kyiv fears Moscow could mount a fresh ground assault.
Russia claims to have captured several settlements in the region in recent weeks, and has massed more than 50,000 soldiers on the other side of the border, according to Ukrainian President Volodymyr Zelensky.
Authorities in the region have evacuated more than 200 villages amid intensified shelling.
China’s Yunnan hit with floods, mudslides from intense rains

- Over 600 tourists visiting rural scenic spots in the area on Saturday found themselves trapped, according to Xinhua, which reported 500 of them had been rescued by Sunday
BEIJING: Heavy rainfall triggering flash floods and mudslides have damaged roads, destroyed buildings and claimed bridges, wreaking havoc in China’s southwestern Yunnan province on a long holiday weekend.
No casualties were reported but more than 4,800 residents in Gongshan county were affected, with about one-third of them urgently relocated, state news agency Xinhua said.
Over 600 tourists visiting rural scenic spots in the area on Saturday found themselves trapped, according to Xinhua, which reported 500 of them had been rescued by Sunday.
Road access to mountainous sites popular with hikers such as Bingzhongluo town and Yubeng village in neighboring Deqin county were cut off, state broadcaster CCTV.
The Dulong river saw flood waters swell to record levels, according to historical logs from a hydrological monitoring station.
A four-story building set along the river that had been evacuated collapsed, CCTV reported, showing a video of the structure tipping backwards and disappearing into a cloud of dust.
The intense rainfall over a 12-hour period disrupted power supplies. Repair work to roads and power lines was underway, said state media.
Local authorities had issued a red alert ahead of the rainstorm on Friday night but downgraded it to a yellow alert by Saturday morning.
China uses a four-color warning system that escalates from blue, yellow, orange to red according to the level of precipitation and anticipated risks.