OFAC SDN list removal via lawsuit against OFAC

Filing a lawsuit against OFAC is an extreme measure. It’s better to get removed from the OFAC SDN list without going to court. However, there are situations when going to court is necessary. For instance, someone got on the OFAC SDN list by mistake. It can be a mistake of fact(s) or a legal mistake. In both cases, that person has a good reason for being removed from the list. The client, through his lawyers, presented evidence of his wrongful inclusion in the listing. But OFAC is not responding to the petition and other requests and reminders. Under the circumstances, going to court can help either open a dialogue with OFAC or continue the litigation and try to win the OFAC SDN delisting case.

Out-of-court delisting procedures

And yet, other things being equal, it is better to try to achieve removal from the US sanctions list by other, less radical means. It usually starts with the preparation of materials for filing a petition with OFAC in order to lift sanctions against a given individual or company. When the materials are prepared, and the petition is drafted and submitted, we will be waiting for the response from OFAC. Usually, OFAC acknowledges receipt of the petition and, states its position on this issue in one way or another. It may also happen that, as a first response to a petition, we receive a request from OFAC to provide certain documents or additional information. When OFAC receives all the necessary information, the negotiation process begins.

In what cases is it still worth going to the US court?

There are cases when you must go to court to overcome the deadlock in the delisting process. For example, after filing a petition to lift sanctions, there is no answer for a long time. In a different scenario, you filed your petition. OFAC requested more information. You provided it. However, this is followed by an unnecessary long pause. OFAC is clearly in no hurry to move on and is not responding to the requests of your lawyers. In both cases, going to court can be justified. Sometimes the very fact of filing a lawsuit will be enough for OFAC to change its position and start the negotiation process.

Why is going to a US court about sanctions can be effective?

Thus, going to a US court to have sanctions lifted can be a very effective remedy if OFAC is unduly delaying your case or it takes them too long to respond to your lawyers’ inquiries. Moreover, going to court can be an effective means not only to urge OFAC to comply with the established administrative process for dealing with such applications, but also to reach a judgment on the merits.

However, in the latter case the court is likely to side with the client if there is a factual or legal error in the inclusion on the US sanctions list. Another ground could be a change in the circumstances of the listing of the individual or company to such an extent that it no longer warrants listing.

All significant decisions during the negotiation process, including whether to file a lawsuit, should be made after consultation with your lawyer. Contact us , and we will tell you what we can do for you.