Is your account blocked due to OFAC sanctions by mistake?
Imagine: you log into your online bank and suddenly see a message about your account being blocked. No warnings, no explanations – just the inability to make payments, access funds, or manage your business. The reason could be an OFAC sanctions screening, and even a simple name match can lead to such consequences. For a company, this means frozen contracts and loss of partners; for an individual, it’s stress and restricted financial freedom. Mistakes are happening more often because banks are required to strictly follow international regulations. In such a situation, the key is not to panic but to act wisely and with legal support.
Our lawyers know how to act in such cases. We analyze the situation, check the grounds for the blocking, and prepare arguments for filing an appeal or clarifications to the bank and regulator. If necessary, we contact OFAC and assist in the process of submitting requests for clarification or removal from sanctions control. We understand that for businesses, every day of account freezing means losses and loss of partners. Therefore, we act quickly, professionally, and in compliance with international standards.
What is “false positive” OFAC and why are you not to blame?
Everyone who deals with international financial transactions may unexpectedly find themselves in a situation where their account is blocked or a transaction is suspended due to sanctions screening. Often, the reason is the so-called false positive during an OFAC check. This does not mean that you have violated the law or are connected with sanctioned individuals. It is a technical system error that requires proper and timely resolution.
A false positive is understood as a situation where automated sanction screening systems mistakenly identify a person or company as matching individuals from OFAC sanction lists. The blocking occurs automatically: the bank or payment system is required to respond to any match, even if it is not related to an actual violation.
The main causes of false alarms:
- A common name. If your last name or first name matches the data in the sanctions lists, the system will automatically generate a match.
- Transliteration errors. Different ways of writing a first name and last name in Latin script (for example, from Cyrillic or Arabic alphabet) can lead to incorrect identification.
- Incomplete or outdated data at the bank. In the absence of additional identifiers (date of birth, passport number, address), the system may mistakenly associate you with a sanctioned individual.
- Technical failures or outdated databases. Even minor errors in software operation increase the risk of false blocks.
The main thing to understand: a false positive is not your fault. You did not violate the sanctions regime, and the fact of the block does not make you a participant in illegal operations. This is a consequence of the strict compliance principle and the stringent obligations of banking institutions, for which it is easier to temporarily freeze a transaction than to risk violating sanctions legislation.
The problem is solvable if you act correctly:
- Contact a lawyer to analyze the situation and prepare explanations for the bank;
- Provide documents confirming your identity and the absence of connections with sanctioned individuals;
- If necessary, send a request to OFAC for official confirmation.
The faster you start acting, the sooner you will be able to restore access to your funds and operations. Our lawyers specialize in sanctions issues and help clients effectively resolve false positive problems.
Primary data collection
Many clients in such cases begin to show aggression and demand the immediate unblocking of funds. This approach not only fails to speed up the process but also complicates interaction with the bank. Employees of financial institutions act strictly within the framework of instructions and cannot cancel the blocking “by a phone call.” The only thing that can really help is calmness, competent requests, and a willingness to provide documents to confirm one’s good faith.
Your first step is to obtain complete information about the reasons for the blockage. To do this, you need to officially contact the bank and clarify:
- The reason for the blocking and reference to OFAC;
- The exact name of the person or company from the SDN list with whom you or your organization were mistaken;
- Transaction or account number to which restrictions have been applied (if applicable).
It is very important to demand that all information be provided in writing. This creates a legally significant basis and will allow your lawyer to competently build a defense strategy.
After receiving data from the bank, it is worth independently verifying exactly who the system confused you with. For this, you can use the official online tool OFAC Sanctions List Search on the U.S. Department of the Treasury website.
The order of actions is simple:
- Go to the OFAC website and open the Sanctions List Search section.
- Enter the name or designation specified by the bank.
- Compare the matches with your actual data (date of birth, address, registration numbers).
Preparation for disputing
The next step after the initial collection of information is thorough preparation for the dispute procedure. The main goal at this stage is to gather documents confirming your identity or the legality of the company’s activities, as well as to draft a convincing explanatory letter.
For individuals, it is required to demonstrate a complete match of personal data with official documents. Therefore, a copy of the passport is prepared, preferably including not only the main page but also the page with registration and residential address. As additional confirmation, a second identification document is attached – a driver’s license or a national ID card. To completely dispel doubts, you can also attach a birth certificate indicating the date and place of birth, distinguishing you from the person on the sanctions list. The final element of the package will be an explanatory letter in which you clarify the nature of the error.
For companies, the process looks similar, but the emphasis is placed on corporate documentation. Registration certificates, statutory documents, as well as a list of directors and ultimate beneficial owners are requested. Additionally, it is useful to attach proof of the legal address: a lease agreement for the office or an extract from the state register. This package is supplemented with a letter on behalf of the company, which explains in detail why the organization has no connection to individuals on the OFAC list.
Particular attention should be paid to the explanatory letter. It is written in English and must be concise, logical, and fact-based. At the beginning, it is necessary to indicate who you are or which company you represent. Then, it should explain that the match is of a technical nature, providing specific arguments: differences in date and place of birth, discrepancies in the spelling of the full name, address, or field of activity. The letter concludes with a clear request to reconsider the decision and lift the restrictions.
Submission of a request for reconsideration to OFAC
When your account or transaction has been blocked due to a false match with a sanctions list, the final and most important step becomes submitting an official request for reconsideration to OFAC. This process is called a Reconsideration Request and allows you to prove that you or your company are not related to the individuals listed in the sanctions lists.
The request can be submitted in two main ways. The fastest option is sending the documents to the official email address: [email protected]. Another acceptable option is mailing them to the address of the U.S. Department of the Treasury, which is sometimes preferred by companies wishing to have a paper confirmation of submission. In both cases, it is important to include a complete set of documents: copies of identity verification papers or corporate registration acts, an explanatory letter in English, as well as any additional evidence that can help distinguish you from the individual on the sanctions list.
After receiving your inquiry, OFAC assigns it a unique case number. This number is used for further correspondence and allows tracking the review status. It is from this moment that a formal investigation begins: OFAC specialists review the documents you provided and compare them with the data in the sanctions lists.
The timeframes for reviewing such requests vary. In simple cases, the process may take several weeks. However, if additional verification is required or external bodies are involved, the procedure can easily extend to several months.
In addition, OFAC may send a request for additional information. Most often, this concerns clarification of personal data (for example, a passport with a more recent issue date) or corporate documents (a current extract from the registry, a list of shareholders, or address confirmation). Such a request should not be perceived as a refusal. On the contrary, it is evidence that your case is in an active stage of review.
When is professional help needed? The role of a lawyer in the process
American sanctions legislation is characterized by a high degree of detail and complexity of procedures. Any application to OFAC requires strict adherence to the format, legal terminology, and the confirmation of each statement with documents. Errors in completion, incomplete data, or an incorrectly drafted explanatory letter can lead to prolonged proceedings.
A professional lawyer will not only help prepare documents in accordance with OFAC requirements but also act as your official representative in communications with the agency. You will not have to engage in complex correspondence in English or figure out legal terminology on your own – the specialist will handle all these tasks.
Many clients try to handle the situation without support and make typical mistakes: submitting an insufficient set of documents, forgetting to translate them into English, using unofficial copies, or sending a letter in the wrong format. The result – additional requests from OFAC, prolonged processing times, and wasted time. In the case of businesses, this can mean significant losses and loss of partners, while for individuals – the inability to manage their own funds for an extended period.
When choosing a representative, it is important to consider their experience specifically in cases related to OFAC sanctions blockages. It is not enough to simply have general experience in international law: knowledge of the American legal system, practices of working with the U.S. Department of the Treasury, and the specifics of sanctions legislation are critical here. In addition, the lawyer must be fluent in English to conduct correspondence and draft documents in an officially recognized format.
Need help unlocking assets and protecting your rights?
Unblocking assets is a complex process that requires a deep understanding of American legislation and OFAC procedures. Errors in document preparation and untimely actions can lead to delays in case review for months. In such situations, it is important not to try to resolve everything on your own but to immediately involve professional lawyers who know how to act correctly.
We help clients analyze the situation, gather evidence, and competently build a defense strategy. Our specialists prepare official requests to OFAC, accompany negotiations with banks, and achieve the restoration of access to assets. In addition, we act as official representatives of clients in international instances, which significantly increases the chances of success.
If your assets are frozen or you are facing sanction restrictions, do not delay solving the problem. Contact us right now, and our lawyers will help protect your rights, restore access to funds, and ensure the stability of your business.
