Challenging Inclusion in the OFAC Sanctions List

Being listed on the U.S. sanctions can have severe repercussions for individuals and companies. If you or your company find yourselves in this situation, it’s crucial not to delay and seek help from experienced OFAC lawyers. Qualified and timely assistance is indispensable in such circumstances.

Preparing and submitting an OFAC SDN List removal and providing ongoing support demands a deep understanding of U.S. sanctions law and practical expertise in handling such cases. Contesting the inclusion of you or your company in the OFAC sanctions list is intricate and time-consuming. It’s essential to dispel illusions that a simple action or a few straightforward steps can yield the desired outcome. Typically, OFAC SDN List removal results from the meticulous efforts of a highly qualified team of OFAC lawyers. We are prepared to assess your situation swiftly, aid in gathering the necessary materials, and initiate the OFAC SDN List removal process on your behalf.

OFAC Application for the SDN List Removal

The United States has a formal process for challenging inclusion in the OFAC sanctions list. The initial step involves a thorough analysis of why you or your company face OFAC sanctions. While a simple one-two-word reason is often available on the OFAC website , more details are needed to file an application for OFAC SDN List removal.

During the initial phase, your consultants play a vital role in assisting you in collecting all necessary information and determining whether the sanctioned individual should take preemptive actions before submitting an OFAC application. These actions may involve restructuring company ownership to alter the majority shareholder or removing the sanctioned person from company management, among other strategies. Subsequently, your OFAC lawyers can craft the OFAC SDN List removal application with the necessary documents, materials, and supporting comments package.

While it’s technically possible to submit an OFAC application with the assistance of local non-US lawyers or even without legal representation, we strongly advise against it for several reasons. Engaging in the OFAC sanctions relief process demands a profound understanding of US laws and OFAC rules and regulations. The decision by OFAC to lift sanctions on a case-by-case basis is significantly influenced by the thoroughness and alignment of the case preparation and presentation with US law and OFAC policy. Professional knowledge in this regard is crucial for a successful outcome.

Indeed, there could be additional arguments supporting OFAC SDN List removal. For instance, one could argue that the initial decision to impose sanctions is no longer justified due to substantial changes in circumstances, such as a noteworthy shift in the individual’s status. Regardless, it’s imperative to offer a thorough justification, utilizing all accessible documents and materials, to clarify why the defendant currently deserves the removal of OFAC sanctions. Understanding how OFAC assesses specific arguments favoring sanctions removal, prioritizes certain aspects, and interprets information regarding relevant parties is crucial in this process.

The success of an application for OFAC SDN List removal hinges significantly on the thoroughness of its preparation, including accompanying documents and explanations. In the event of an adverse decision by OFAC, there is the option to appeal or take the matter to court. However, it’s important to note that the likelihood of success typically diminishes in such instances, and the intricacy of subsequent steps tends to increase.

Absolutely, a successful appeal must be grounded in valid reasons, such as an error in the OFAC application review, changes in circumstances since its submission, and other notable developments and facts that were overlooked during the OFAC SDN List removal request assessment. These factors should substantially change the overall understanding of the sanctioned status of the individual or entity. Thus, the accuracy and precision in preparing the OFAC application and supporting documents play a pivotal role in the potential success of the appeal.

Negotiations with OFAC while Application is Pending

The OFAC application for sanctions removal entails a substantial review period, typically lasting at least a year. This extended duration is due to the involvement of internal procedures within OFAC and the necessity to synchronize this process with other pertinent departments and agencies. These entities encompass the US Department of State , the US Department of Commerce , the US Department of Justice , and other agencies tasked with data collection, monitoring, and ensuring compliance with the US sanctions regime.

To elaborate, upon receiving a petition for sanctions removal, OFAC disseminates it along with accompanying documents and comments to all relevant ministries and agencies on its list. Each of these entities then reviews the case, analyzing and summarizing existing information and, if necessary, gathering additional details. This process unfolds interactively, with constant engagement among these agencies, fostering a shared context for scrutinizing each case. Consequently, after months of concerted effort, a collective interagency consensus was established regarding the petition. OFAC undeniably plays a pivotal role in shaping the conclusions from this interagency review.

While reviewing the petition, OFAC might send a list of questions or request additional information. Both should be seen as opportunities to initiate a dialogue with the OFAC regarding the case. The effectiveness of the responses to these inquiries significantly influences the outcome of the case. Moreover, during interactions with OFAC, proposing an action plan to meet specific OFAC requirements, if they arise, is a viable approach. Importantly, negotiations with OFAC should be oriented towards achieving an acceptable outcome rather than trying to “convince” OFAC, potentially involving specific compromises if necessary.

Negotiating with OFAC is a process that is neither simple nor swift. It requires continuous efforts to gather essential information, prepare documents, consult with the client, and adapt the position as the case evolves. Nonetheless, with a well-planned strategy, persistence, and determination, achieving OFAC SDN List removal is ultimately possible. The client’s perspective is pivotal in this context—grasping the intricacies of negotiations with OFAC and being open to making specific concessions and compromises based on the guidance of their attorneys.

Lawsuit to Challenge Inclusion in the OFAC SDN List

Taking OFAC actions to court is a last resort measure to be considered only when all other avenues have proven ineffective. Even in such instances, careful consideration is paramount. However, there are situations where resorting to the court becomes necessary, such as when a client is included in the OFAC list without adequate grounds or in violation of US law or specific procedural rules and regulations.

In specific scenarios, the use of a legal action threat becomes an option if OFAC unduly extends the review process of a submitted petition or fails to respond within a reasonable timeframe. Although the grounds for taking OFAC to court are restricted, the mere threat of legal action might encourage the organization to adopt a more cooperative stance.

If you or your company is facing U.S. sanctions, feel free to contact us for a consultation . We will swiftly evaluate your situation and furnish you with a step-by-step plan to achieve OFAC SDN List removal.