SDN List Removal Lawyer
We prepare OFAC administrative reconsideration petitions to remove individuals and entities from the SDN list. Comprehensive legal submissions. International experience.
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Removal from the OFAC Specially Designated Nationals list — known as delisting — is the primary goal for anyone designated under a US sanctions programme. While the SDN list is administered by a US government agency, the legal and evidentiary work required to achieve delisting is substantial and demands specialist counsel with knowledge of both US sanctions law and the international context of each specific case.
Delisting — removal from the OFAC Specially Designated Nationals (SDN) list — is achieved through an administrative reconsideration petition filed with OFAC’s Office of Global Targeting.
- Designations rest on specific authorities (EO 13848, CAATSA, Iran/Venezuela regulations, IEEPA, TWEA) — the petition must address the exact ground used.
- Designation can be primary (direct conduct) or derivative (ownership/association with a designated entity).
- A voluntary self-disclosure (VSD) can mitigate penalties and speed resolution, but confirms a violation occurred — a strategic decision.
- SDN listing is a financial measure, not a formal travel ban, but in practice it makes banking and travel extremely difficult.
- Effective petitions require US-qualified sanctions counsel; our Cyprus team coordinates the multi-jurisdictional strategy.
Understanding How SDN Designations Are Made
OFAC designations on the Specially Designated Nationals list are made under specific statutory authorities — the most relevant currently being: Executive Order 13848 (foreign interference in elections); CAATSA (Russia, Iran, North Korea); the Iran sanctions regulations; the Venezuela sanctions regulations; and OFAC’s general authority under the International Emergency Economic Powers Act (IEEPA) and the Trading With the Enemy Act (TWEA). Each authority has different evidentiary standards and different grounds for delisting.
Designations can be based on either direct involvement in the specified sanctioned conduct (primary designation) or on association with a designated entity — as an owner, director, officer, or significant business partner (secondary or derivative designation). Understanding the specific statutory basis and the factual predicate for the designation is essential to crafting an effective delisting strategy, because the argument must directly address the specific ground on which the designation was made.
| Statutory / executive authority | Focus |
|---|---|
| Executive Order 13848 | Foreign interference in elections |
| CAATSA | Russia, Iran, North Korea |
| Iran sanctions regulations | Iran-related conduct |
| Venezuela sanctions regulations | Venezuela-related conduct |
| IEEPA / TWEA | OFAC’s general emergency economic powers |
Voluntary Self-Disclosure — A Route to Faster Resolution
In cases where an individual or entity was designated following conduct that did violate OFAC rules — for example, transactions with sanctioned parties that were not identified as such at the time — a voluntary self-disclosure (VSD) to OFAC can provide significant penalty mitigation and, in appropriate cases, can accelerate the delisting process. A VSD demonstrates good faith compliance and typically results in a “no action letter” or a reduced civil monetary penalty rather than a formal enforcement action or continued designation.
However, a VSD also confirms that a violation occurred, which has legal implications for ongoing designation status, potential criminal liability (if the conduct was knowing and wilful), and for the individual’s profile in OFAC’s databases. The decision to file a VSD requires careful strategic analysis in consultation with US sanctions counsel.
Working with US Counsel on OFAC Delisting
OFAC delisting petitions are filed with OFAC in Washington, D.C., and are reviewed by OFAC’s Office of Global Targeting. The petition must comply with OFAC’s procedural requirements and present legal and factual arguments that directly address the basis for the designation. While Cyprus lawyers can manage the overall strategy and provide coordination with non-US legal systems, effective OFAC delisting requires US-qualified sanctions counsel to prepare and submit the actual petition. Our Cyprus office works in close coordination with US sanctions specialists in Washington, New York, and London to provide integrated multi-jurisdictional delisting representation.
OFAC Lists & Tools at a Glance
| Tool | What it means |
|---|---|
| SDN list | Full designation — asset freeze plus a US-person transaction ban |
| SSI (Sectoral) list | Sector-specific, more limited restrictions than full SDN listing |
| Consolidated list | Combines the SDN list with SSI, Foreign Sanctions Evaders and other lists |
| Specific licence | Authorises a defined transaction (e.g. legal fees, living expenses) while the designation remains in force |
Frequently Asked Questions
What is the difference between the SDN list and the OFAC consolidated sanctions list?
The SDN (Specially Designated Nationals) list is OFAC’s primary sanctions list — it includes individuals and entities subject to asset freezes and US-person transaction prohibitions. The OFAC consolidated sanctions list combines the SDN list with several other OFAC-maintained lists, including the Sectoral Sanctions Identifications (SSI) list, the Foreign Sanctions Evaders list, and the Non-SDN Iranian Sanctions Act list. Appearing on a sectoral list (SSI) has different and more limited restrictions than full SDN listing. We advise on the specific list applicable to each designation and the corresponding delisting strategy.
Can I travel internationally if I am on the OFAC SDN list?
OFAC SDN designation does not itself impose a travel ban — it is a financial sanctions mechanism, not a travel restriction. However, the practical consequences of SDN designation make international travel extremely difficult: US airports and border control will deny entry to designated persons; countries with close US law enforcement cooperation will often act on SDN designations; financial institutions in countries with US dollar exposure will refuse services; and the risk of asset freezing in any country extends to all assets that come within US jurisdiction, including during transit.
Does OFAC share SDN designation information with Interpol?
OFAC and Interpol are separate organisations and do not formally share SDN designations. However, there is often coordination between US law enforcement (who may have provided intelligence to OFAC) and international law enforcement through Interpol channels. A person who is on the OFAC SDN list may also have an Interpol Red Notice if the same conduct resulted in a criminal investigation in the United States or another country. A coordinated strategy addressing both the OFAC designation and any Interpol notices simultaneously is often the most effective approach.
What is an OFAC specific licence and how does it help?
An OFAC specific licence is a formal authorisation from OFAC permitting a specific transaction or category of transactions that would otherwise be prohibited by the applicable sanctions regulations. For SDN-designated persons, specific licences can be obtained for: essential living expenses; legal fees (OFAC has a general licence for legal services in many programs); prior contractual obligations; and other transactions that OFAC determines are consistent with US foreign policy. A specific licence does not remove the designation — it authorises specific conduct while the designation remains in force. We assist with specific licence applications as a component of the overall strategy.
Can I use a third party to conduct transactions while on the OFAC SDN list?
Using a third party to conduct transactions on behalf of an SDN-designated person is itself potentially prohibited by OFAC regulations. The “blocking” provisions prohibit not only direct transactions with designated persons but also transactions designed to evade the sanctions by routing them through third parties. Any arrangement involving third parties must be reviewed against the specific applicable OFAC regulations and, if necessary, an OFAC-specific licence obtained authorising the arrangement. Acting without legal advice in this area creates significant OFAC violation risk for the third party as well as the designated person.
