We will ensure highly qualified representation of the client before OFAC
Whether it’s OFAC SDN delisting, unfreezing assets, or dealing with the adverse effects of a company restructuring in which a sanctioned person owned 50 percent of the shares or more – we are ready to represent our clients in OFAC and do whatever it takes to succeed.
REPRESENTATION OF CLIENTS BEFORE OFAC
- Who Needs Representation Before OFAC?
- Assets Unfreezing
- Consequences of Company Restructuring in which a Sanctioned Person Owned 50 % or More
- Representing Clients before OFAC on Different Issues
You can contact us with any sanctions questions anytime - we will be happy to help
We will develop and implement an action plan for you to unfreeze the assets
We can help you if the company was restructured but the consequences of the sanctions remained
We can represent a client before OFAC on other matters related to US sanctions
Who Needs Representation Before OFAC?
Suppose you or your company is under US sanctions. In that case, all your accounts and transactions are automatically blocked, and you cannot continue business activities. This situation looks like a complete deadlock. However, even in this case, you probably can find a way out if you are ready to make certain concessions and compromises. We can help you here. It’s always better to ensure a legal representation of the client before the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury to fully understand reasons for this situation and conduct negotiations with this department on possible ways to lift sanctions.
In particular, representing a client before OFAC can significantly help if your goal is to unfreeze assets. In this case, at least two scenarios are possible. The first is when you need to unfreeze part of your assets to complete a particular transaction. First, you must obtain an OFAC license. Essentially, a license is OFAC’s authorization to carry out a specific transaction that, if not authorized, would be prohibited. When you apply to OFAC to allow a particular transaction, you must justify why certain assets should be released.
The second scenario is about unfreezing all assets. In this case, most likely, the solution to this problem should be a delisting from the OFAC SDN list , since the blocking of all assets most often occurs as a result of the inclusion of a particular individual or company in OFAC SDN list. As in the first case, we are ready to help.
Consequences of Company Restructuring in which a Sanctioned Person Owned 50 % or More
One may need a representation before OFAC when dealing with the negative consequences of restructuring a company in which a person under US sanctions owned 50% or more. According to the 50 percent Rule , such a company is automatically considered under sanctions, and all its assets in the United States are blocked. In this situation, the company’s major shareholder may want to reduce his stake below 50 percent to get it out of the sanctions. Note that this can only be done outside the USA since any transactions with the company are prohibited in the United States. In addition, US citizens or US companies must not be involved in such a transaction.
Let’s suppose this is done outside of America and without the involvement of American individuals or companies. Thus, the company is no longer considered under US sanctions automatically because the sanctioned person’s share has fallen below 50 percent. However, if the company property comes within the US or within the possession or control of a US citizen or US entity, it will be blocked. You can unfreeze it in one of two ways only: (1) get an OFAC license to unblock particular property of the company or to do a transaction with this property; (2) remove the former majority shareholder of the company from the OFAC SDN List . The situation turns out this way because, firstly, the sanctioned person retains some of his interest in the company. Secondly, and most importantly, OFAC does not recognize the unauthorized transfer of ownership in the company by a person under US sanctions .
Representing Clients before OFAC on Different Issues
Representation of clients before OFAC may be necessary for a variety of reasons. Whether it’s delisting from OFAC SDN List , getting an OFAC license or making a request to OFAC, you’d be much better off with a US lawyer. Contact us to find out how we can help.
QUESTIONS & ANSWERS:
Yes, you can. However, considering the complexity of the sanctions issues and their high stakes, many clients choose to do it with legal help.
To make a deal with a frozen property or a blocked company, you need to obtain an OFAC license.
OFAC licenses can be general or specific. A general license authorizes any person (other than those under sanctions) to engage in certain transactions that would be prohibited were it not for this general license. General licenses are published on the OFAC website. A specific OFAC license is issued to a particular person to conduct a specific transaction.
If such a restructuring occurs outside the United States and does not involve American persons or organizations, you can do it without an OFAC license. However, even after such a restructuring, the company’s assets, once in the United States or under the control of an American citizen or company, will be frozen. To unfreeze them, you must contact OFAC and get its license.
Only a licensed U.S. attorney can represent a client before OFAC.
WHAT WE DO
- OFAC Sanctions
- Startup in the USA
- How to Open a Business in the USA
- Business Dispute in New York