OFAC License Application Case: Legal Assistance and Outcome
Read more about our sanctions case.
Senior Partner
Anatoly YarovyiService
A UK-based individual sought legal support for an OFAC license application after an international transfer to a family member in the UAE became subject to an OFAC-related restriction. The client needed to understand the legal consequences of the restriction and the steps required to obtain authorization from the U.S. Department of the Treasury’s Office of Foreign Assets Control.
Our legal team reviewed the transaction, assessed the relevant circumstances and prepared the documentation required for the OFAC licensing process.
Client Situation
The client was residing in the United Kingdom and had made a personal international transfer to a family member in the UAE.
Following the transaction, an OFAC-related restriction created uncertainty about the client’s ability to deal with the affected funds and conduct future financial transactions. The client was also concerned about possible wider financial and personal consequences.
The main objective was to establish the basis of the restriction and determine whether an application to OFAC was necessary to authorize the relevant transaction or activity.
What Was the OFAC Licensing Issue?
OFAC administers U.S. economic and trade sanctions programs. Depending on the sanctions regime and the parties involved, certain transactions may be prohibited unless they fall within an exemption or authorization.
A specific license is an authorization issued by OFAC for a transaction or series of transactions that would otherwise be prohibited. OFAC also provides a specific licensing procedure for applications involving the release of blocked funds.
This distinction is important because obtaining an OFAC license is not the same as removing a person from a sanctions list or cancelling a sanctions designation.
For this case, the legal work focused on the licensing process connected with the affected transaction.
How Did Our Lawyers Assist?
Our legal team reviewed the client’s financial and transactional history to understand the circumstances that had led to the OFAC issue.
The work included:
- analysing the relevant transaction and supporting records;
- identifying the information required for the licensing submission;
- advising the client on the scope and implications of the OFAC restriction;
- preparing the OFAC license application;
- submitting the application with the supporting information relevant to the client’s circumstances.
OFAC requires license applicants to provide sufficient information about the proposed transaction and the parties involved. Applications for release of blocked funds can also be submitted electronically through OFAC’s licensing system.
Outcome: OFAC Granted the Requested License
Following consideration of the application, OFAC granted the requested license.
The license provided authorization for the activity covered by the application and resolved the specific licensing issue addressed in the submission.
The client also received guidance on future compliance considerations relevant to similar international transactions.
Why Can an OFAC Specific License Be Important?
An OFAC specific license may be relevant where a transaction would otherwise be prohibited and no applicable general license or exemption authorizes it.
OFAC considers specific license applications on a case-by-case basis. Where a general license already covers the transaction, a separate specific license generally is not required.
For individuals and businesses dealing with blocked funds or restricted transactions, the first step is therefore to identify:
- which sanctions program applies;
- why the transaction was blocked or restricted;
- whether an existing authorization applies;
- whether a specific license application is necessary;
- which documents and factual information must support the request.
Need Help With an OFAC License Application?
OFAC licensing matters are highly fact-specific. The appropriate approach depends on the transaction, the parties involved, the sanctions program and the nature of the restriction.
Our lawyers assist with the review and preparation of OFAC licensing matters, including applications involving restricted transactions and blocked funds.
Contact our lawyers for a confidential assessment of your OFAC licensing matter.