OFAC Representation

The consequences of violations, even unintentional ones, can be catastrophic. Companies face fines amounting to millions of dollars. Individuals may lose access to their accounts, real estate, and investments for an indefinite period. The main danger lies in the extraterritorial nature of these sanctions. They apply not only to U.S. citizens and companies but also to any transactions passing through the American financial system or to foreign individuals conducting business with sanctioned entities.

The key tool of OFAC is the Specially Designated Nationals and Blocked Persons List (SDN List). Being included in this list effectively means financial isolation. Any assets of such a person within U.S. jurisdiction are immediately frozen. U.S. citizens and companies are prohibited from conducting any business with them. Moreover, many international banks and corporations voluntarily refuse to cooperate with individuals on the SDN List to avoid risks for themselves. This creates an effect of “financial exile,” from which it is practically impossible to escape without the help of qualified sanctions lawyers. Thus, OFAC sanctions represent a direct and significant risk requiring proactive management and, if necessary, decisive legal defense.

OFAC Representation is a multifaceted service covering all aspects of interaction with the U.S. sanctions regulator. We do not simply respond to already arisen issues; we create a protection system for our clients that helps prevent violations and effectively resolve complex situations if they still occur. Our approach is based on a deep understanding of OFAC logic, extensive practical experience, and the development of an individual strategy for each case.

1. Sanction compliance and risk assessment

The best way to avoid problems with OFAC is to build a reliable internal control system. Sanctions compliance is not a one-time event but a continuous process of adapting to constantly changing regulations. We help clients integrate this process into their daily activities. Our lawyers analyze your business model, geography of operations, client base, and supply chains to identify potential “red flags” and vulnerabilities.

Based on this analysis, we develop and implement individual compliance programs (Sanctions Compliance Programs, SCP). Such a program includes clear internal regulations, counterparty due diligence procedures, protocols for responding to potential matches in sanctions lists, and a system for regular staff training. An effective compliance program not only minimizes the risk of accidental violations but also serves as an important mitigating factor in the eyes of OFAC if an investigation is initiated.

2. Obtaining OFAC licenses

Contrary to popular belief, sanctions do not always mean a complete ban on any activity. In many cases, U.S. legislation provides the possibility of obtaining special permission from OFAC to conduct certain transactions that would otherwise be prohibited. These permissions are called licenses. They come in two types: general licenses, which allow certain categories of transactions for everyone, and specific licenses, which are issued to a particular applicant for a specific operation.

The process of obtaining a specific license requires meticulous preparation and deep knowledge. It is necessary to prove to OFAC that the proposed transaction aligns with U.S. foreign policy, does not undermine the objectives of a particular sanctions program, and meets all formal requirements. Our attorneys handle the entire process: from assessing the chances of obtaining the license to preparing a comprehensive package of documents, which includes a detailed description of the transaction, its participants, purpose, and legal justification. We directly interact with OFAC staff, respond to their inquiries, and advocate for your position, significantly increasing the likelihood of a positive decision.

Unlocking of assets and accounts

A sudden blocking of a bank account or other property at the request of OFAC is one of the most stressful situations for any individual or company. This happens when a financial institution suspects that a transaction or the account owner themselves may be connected to a sanctioned person or activity. At this moment, your funds become “frozen,” and access to them is completely terminated.

Our primary task in such a situation is to promptly determine the reason for the blockage. We contact the bank, analyze the transaction details, and identify the basis on which the measures were taken. Next, we prepare and submit an administrative request to OFAC for unblocking (Unblocking Application). This document contains a detailed explanation of the situation, evidence that the blockage was made in error, or that the asset owner is not connected to sanctionable activities. We represent your interests at all stages of this process, negotiate with OFAC, and strive for the swift release of your funds.

Representation in investigations and enforcement measures

Receiving an official request from OFAC, such as an Administrative Subpoena, is a signal of the start of an official investigation. This document requires providing detailed information and documentation about your operations. Ignoring or improperly responding to such a request can lead to serious penalties. At this point, you need an experienced representative.

We provide full support at all stages of the investigation. Our lawyers:

Our goal is to protect you from unfounded accusations, and in the case of a confirmed violation, to negotiate the most lenient settlement terms.

Exclusion from sanctions lists (SDN List Removal)

Being added to the SDN list is not a life sentence. There is an administrative procedure for removal from it, known as delisting. This process is complex and requires substantial evidence that the grounds for inclusion in the list are no longer relevant or were erroneous from the outset. The delisting process includes several key stages, at each of which professional legal assistance is required.

For successfully navigating this path, we develop a clear strategy that begins with a thorough analysis of the “case” against the client. We prepare a comprehensive Petition for Removal, in which we present OFAC with factual and legal arguments in your favor. These may include evidence of changed behavior, termination of ties with sanctioned individuals, court decisions, or proof that the initial designation was based on incorrect information. We guide the petition through every step of its review process, respond to additional OFAC inquiries, and utilize all available legal mechanisms to achieve a positive outcome.

Our experience is not limited to theory. We have successfully represented the interests of international corporations, financial institutions, small and medium-sized businesses, as well as private individuals in a wide variety of situations. We have achieved the unblocking of multimillion-dollar assets for European companies, assisted tech startups in obtaining export licenses for their products, and successfully contested the inclusion of our clients on sanctions lists. Each such case enriches our expertise and allows us to find unconventional solutions for the most complex challenges. We understand that cases involving OFAC require the utmost delicacy. Therefore, we guarantee complete confidentiality and build our work on a foundation of trust. Your situation is unique, and we will develop an individualized legal strategy aimed at achieving your specific goals with minimal costs.

To clearly demonstrate how professional representation affects the outcome of a case, let us consider typical problems and our proposed solutions in table format.