Introduction

A request from the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury for additional information or supporting documents is a fairly common occurrence when dealing with this agency. Such requests often arise, for example, when submitting an application to OFAC for a license or removal from the U.S. sanctions list.

There are also situations where OFAC initiates the first contact by requesting specific documents or information. In such cases, it typically issues an OFAC subpoena.

In either scenario, OFAC’s requests must be taken seriously. Any inaccuracies or incomplete responses can lead to a swift adverse decision that may be extremely difficult or even impossible to overturn.

OFAC Request for Additional Information When Applying for a License

After a request for an OFAC Specific License has been submitted on behalf of a client, it is not uncommon for the client or his attorney, if the application was submitted through legal counsel, to receive a follow-up OFAC request for additional information. While such requests do not occur in every licensing case, they are relatively frequent given the overall volume of applications submitted.

For example, if you submit a license application on your own without assistance from professionals experienced in sanctions law, you run the risk of including errors, omissions, or failing to provide all required supporting details. If an application contains major errors or lacks critical information, OFAC will typically reject it outright without further consideration. However, if the issues are minor or non-critical, OFAC may follow up via email with clarification questions or request supplemental documents.

Another common scenario involves a single applicant submitting multiple license applications to OFAC. In such cases, all applications are usually assigned to the same OFAC officer, who will contact the client or client’s attorney with additional questions or information requests.

Removal from the OFAC SDN List and Requests for Additional Information

When a petition is submitted for removal from the OFAC SDN List, OFAC typically reaches out to the client’s attorney approximately three to four months after receiving the petition and supporting documentation. The OFAC request at this stage may pertain to a wide range of issues, including matters already addressed in the submitted documentation, as well as issues beyond the original scope, so long as they are relevant to the case.

Unlike the follow-up questions commonly sent in connection with license applications, which are often limited to clarifying details, an OFAC request in the context of a delisting petition is more of an invitation to dialogue than a simple inquiry. Throughout the delisting process, the client’s attorney communicates with OFAC officials, responding to questions and building the client’s legal and factual position through written correspondence.

OFAC Subpoena and Supplementary Inquiries

An OFAC subpoena is typically issued when there is a suspected or confirmed violation of U.S. sanctions laws. In either case, it is crucial to contact legal counsel experienced in OFAC matters without delay to assess your situation and identify the best course of action.

Violations of U.S. sanctions laws can lead to civil or even criminal liability. The financial penalties can be substantial. For example, in 2014, BNP Paribas was fined $8.9 billion for sanctions violations – still the largest sanctions-related penalty in history. However, multi-million-dollar fines are not unusual and are imposed regularly in enforcement cases.

Conclusion

Whether you’ve received an OFAC request concerning a license application, a delisting petition, or an OFAC subpoena, treating the matter with the utmost seriousness is critical. The first question is whether you can respond appropriately or whether legal assistance is necessary. In most cases, it is not advisable to handle such matters without qualified legal support.

The outcome of your case will undoubtedly hinge on the substance and precision of your response. However, your reply may also lead to unexpected consequences. In many respects, an OFAC request functions much like a subpoena from a federal investigator—any misstep could transform your role from a cooperative witness to a target of enforcement action.

The safest approach is to act confidently, knowing your rights are fully protected and your response is strategically designed. Reach out to us, and we’ll offer comprehensive advice on all OFAC-related issues and, if needed, create and execute a customized defense tailored to your case.