OFAC Lawyers
Our team of OFAC sanctions lawyers and economic sanctions attorneys are well-versed in the regulations set forth by the Office of Foreign Assets Control (OFAC) and other international bodies. We assist clients in ensuring compliance with these regulations and effectively represent them in any disputes or OFAC investigations.
Navigating the regulations set by the Office of Foreign Assets Control is a complex legal process that requires seasoned legal guidance from a team that specializes in OFAC-related matters. whether you need help with OFAC licensing or understanding how to address potential violations, you’ll need strategic counsel to ensure compliance.
OFAC Sanctions Lawyer
The Office of Foreign Assets Control (OFAC), a division within the U.S. Department of the Treasury, oversees and enforces U.S. economic sanctions and trade embargoes involving foreign nations and designated individuals. It takes action to advance U.S. national security and foreign policy objectives, drawing its legal authority from various sources, including executive orders, legislation, and international agreements.
What is OFAC Sanctions Attorney?
OFAC sanctions encompass a dynamic and intricate framework of rules, regulations, and foreign policy shifts. They also involve a continually evolving list of individuals and countries of concern. Any individual, organization, or foreign entity perceived as a threat to U.S. national security, foreign policy, or economic interests may face sanctions. In international business and transactions, compliance with OFAC laws and regulations is paramount. Staying abreast of evolving policies can be challenging, but an experienced OFAC attorney can offer valuable guidance for specific licensing, addressing current foreign activities, and other legal matters.
The Scope of OFAC’s Authority
Initially, it may seem that OFAC primarily addresses significant national security concerns like terrorism and international drug trafficking, making it appear unnecessary for most businesses to concern themselves with OFAC compliance. However, part of OFAC’s responsibility is to scrutinize U.S. companies engaged in international commerce. Consequently, it is vital for any company with overseas customers or suppliers to establish an OFAC compliance program.
The following scenarios necessitate the implementation of an OFAC compliance program:
1. A business routinely interacts with an individual, organization, or nation listed in the OFAC sanctions registry.
2. A business conducts a substantial volume of international transactions.
3. A business undergoes shifts in its customer base due to mergers or acquisitions.
4. A business offers electronic products and services.
5. A business has a history of prior OFAC violations or encounters.
Types of Sanctions
Type of Sanctions:
Economic and Trade Sanctions – Impose limitations on trade, investment, or financial interactions involving the designated country or entity and other nations or entities. These restrictions may encompass import/export constraints, freezing of assets, and bans on financial transactions.
Diplomatic Sanctions – They Restrict or sever diplomatic relations between countries. This can encompass actions like expelling diplomats, suspending diplomatic missions, or enforcing travel restrictions on government officials.
Military Sanctions – They Limit military collaboration, training, or the transfer of weaponry between nations. This may involve measures such as arms embargo or constraints on the trade of military technology and equipment.
Humanitarian Sanctions – Restrict the provision of humanitarian aid or services to the designated country or entity. This may entail constraints on the supply of medical resources, food, or other forms of humanitarian assistance.
Personal Sanctions – Targeted sanctions are directed at specific individuals, such as government officials, and may include travel bans, asset freezes, and other restrictions. They are also known as “targeted sanctions”.
Comprehensive Sanctions – Target an entire country or organization and may include several types of sanctions. As a rule, this is the most severe form of sanctions, which can have a significant impact on the economy and population of the country or organization targeted.
OFAC’s Range of Economic Sanctions Initiatives
The Office of Foreign Assets Control (OFAC) administers four major categories of trade and economic sanctions. Each category includes numerous specific OFAC sanctions that American financial institutions and businesses must adhere to.
Oberheiden P.C. assists these institutions and businesses in identifying relevant sanctions, ensuring compliance, and providing legal defense in OFAC enforcement actions across all four categories.
The economic and trade sanctions managed by OFAC include:
1. Country-Specific Economic Sanctions
The office of Foreign Assets Control enforces economic sanctions against 18 countries, restricting or prohibiting trade. These OFAC sanctions may target entire foreign countries or specific transaction types or market sectors. Current country-specific sanctions cover:
- Afghanistan
- Belarus
- Burma
- Chinese Military Companies
- Cuba
- Ethiopia
- Hong Kong
- Iran
- Nicaragua
- North Korea
- Somalia
- Sudan, Darfur, and South Sudan
- Syria
- Ukraine
- Venezuela
OFAC often issues general licenses allowing certain economic activities in these countries. For a successful defense against alleged violations of OFAC regulations, proof of transaction alignment with a specific general license is typically necessary.
2. List-Based or Smart Sanctions
These OFAC sanctions target specific threats rather than countries. They encompass:
- Counterterrorism
- Cyber-related activities
- Genocide and Human Rights Abuse
- Transnational Organized Crime
- Financial sector
- Weapons Proliferation
Targeting specific individuals, businesses, and entities designated as Specially Designated Nationals or Blocked Persons (SDNs), these sanctions block assets and prohibit dealings with them by U.S. persons.
3. Sector-Based Sanctions
Sectoral sanctions target specific trade sectors within certain countries, not individual nations or entities. A notable example is the sector-based OFAC sanctions related to Ukraine, especially following Russia’s annexation of Crimea and the ongoing conflict.
4. Secondary Sanctions
These OFAC sanctions penalize entities that associate or conduct business with SDNs. Though relatively new and limited in number, the recent implementation of secondary sanctions indicates potential expansion of this program.
Economic Sanctions Defense
OFAC administers multiple economic or trade sanctions programs aimed at regulating and often preventing commercial and financial dealings with foreign entities and individuals. U.S. banks and domestic entities must consistently adhere to these sanctions, whether it involves abstaining from prohibited transactions or conducting restricted transactions under a general or specific OFAC license.
Violations of OFAC’s economic sanctions can lead to severe repercussions, including asset freezes, federal investigations, and, in many cases, potential prosecution and criminal penalties for U.S. banks and businesses. Consequently, all U.S. entities engaged in cross-border transactions affected by OFAC regulations must prioritize sanctions compliance. They should also be prepared to mount an effective defense if accused of violating OFAC’s economic sanctions.
How our OFAC sanctions lawyers can help
With multiple comprehensive, selective, and overlapping sanctions programs in existence, Americans might inadvertently confront or violate issues with OFAC sanctions laws. Moreover, people who might want to understand an investment or project that might conflict with OFAC sanctions regulations will need to consult a knowledgeable OFAC lawyer.
Before engaging in such activities, businesses and individuals should seek legal counsel from an OFAC Sanctions lawyer to avoid potential violations. An OFAC lawyer will help you with risk assessment and develop effective compliance programs to avoid both civil penalties and criminal violations. As such, you don’t need to wait until you’re served an OFAC administrative subpoena to seek legal counsel.
OFAC Sanctions FAQ
- Export and import licensing;
- Personal or commercial transactions;
- OFAC administrative subpoenas;
- Unblocking frozen funds and assets;
- Voluntary disclosure of information;
- General advisory opinions;
- Internal review and investigation of cases;
- Exclusion from the SDN list, i.e. the list of specially designated nationals.