What is a potential consequence of not reporting a transaction to OFAC?

The potential consequence of not reporting a transaction to the Office of Foreign Assets Control (OFAC) can lead to increased scrutiny from federal agencies. OFAC is responsible for enforcing economic and trade sanctions based on US foreign policy and national security goals. When a transaction that involves sanctioned individuals or entities is not reported, it raises a red flag that can prompt more thorough examinations of both the firm’s and the individual's practices by federal agencies.

Increased scrutiny means that regulatory bodies may investigate further into the organization's compliance measures, including transaction monitoring and reporting processes. This can involve audits and may lead to more severe consequences if patterns of non-compliance are uncovered. As such, ensuring that all relevant transactions are reported helps maintain transparency and compliance with federal laws, thereby mitigating the risk of facing heightened investigations.

The other options mentioned may also be possible consequences of non-compliance under different circumstances, but the immediate and direct consequence of failing to report a transaction to OFAC is indeed the higher likelihood of increased attention from federal oversight entities.