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OFAC Lawyer
Specialist OFAC defence lawyers. SDN list removal petitions, OFAC specific licence applications, secondary sanctions advice, and blocked funds release.
The US Office of Foreign Assets Control (OFAC) administers and enforces economic and trade sanctions programmes targeting foreign governments, terrorist organisations, narcotics traffickers, and other threats to US national security and foreign policy. An OFAC designation — particularly listing on the Specially Designated Nationals and Blocked Persons (SDN) list — can have devastating consequences for individuals and businesses worldwide, even those with no direct US presence or activity.
What Is OFAC and Why Does It Matter?
OFAC operates under the US Treasury Department and administers more than 30 active sanctions programmes. The SDN list currently contains thousands of individuals and entities across dozens of countries. When you are designated:
- All property and interests in property you have in the United States are frozen
- US persons — including US banks globally — are generally prohibited from transacting with you
- Any entity 50% or more owned by a designated person is itself treated as designated
- US dollar transactions become effectively impossible, as correspondent banking relationships require compliance with OFAC rules
- Non-US financial institutions face secondary sanctions exposure for providing significant financial services to SDN-listed persons
The practical impact extends far beyond US borders. Because the US dollar is the world’s reserve currency and most international transactions clear through US correspondent banks, OFAC designation can shut a business or individual out of the global financial system entirely.
SDN List Removal: Administrative Reconsideration
OFAC permits designated individuals and entities to petition for administrative reconsideration — a formal review of the designation decision. A successful petition results in removal from the SDN list. The petition must demonstrate that the factual basis for the designation is incorrect, that circumstances have changed, or that the designation no longer serves US foreign policy and national security objectives.
Preparing an effective reconsideration petition requires deep knowledge of the applicable OFAC sanctions programme, the specific designation criteria, and the legal and evidentiary standards OFAC applies. We prepare comprehensive reconsideration petitions that address each element of the designation and present the strongest possible case for removal.
OFAC Specific Licence Applications
Where removal from the SDN list is not immediately achievable, OFAC specific licence applications can authorise particular transactions that would otherwise be prohibited. Licences are available for humanitarian purposes, legal fee payments, asset unblocking in appropriate cases, and certain business activities. We advise on the licence application process and prepare submissions for OFAC review.
Secondary Sanctions and Non-US Persons
Secondary sanctions target non-US persons who conduct significant transactions with SDN-listed individuals or entities. For Cypriot shipowners, financial institutions, and commodity traders, secondary sanctions exposure is a serious risk that requires proactive compliance advice. We advise on transaction screening, due diligence requirements, and risk mitigation strategies for non-US clients with international operations.
Frequently Asked Questions
The OFAC SDN list is publicly available on the US Treasury website and is updated regularly. You can search for your name or your company’s name directly. If you have been designated, OFAC is required to notify you. However, in practice, individuals often first become aware of their designation when a bank blocks a transaction or freezes an account. If you suspect you may be designated, a formal SDN search should be conducted immediately.
Yes. OFAC designations can be challenged in US federal court under the Administrative Procedure Act. However, this is a resource-intensive and complex process. US courts apply a deferential standard of review to OFAC decisions, which makes administrative reconsideration — the internal petition process — the more common and often more effective first step. Litigation is typically pursued where administrative remedies have been exhausted without a satisfactory outcome.
Yes. OFAC sanctions apply to persons of any nationality where the designation criteria are met. Non-US persons with no direct US business, bank accounts, or assets can still be designated if they are found to meet the criteria under an applicable sanctions programme. The reach of OFAC is extraterritorial in practice due to the dominance of the US dollar in international commerce.