OFAC Release of Blocked Funds
The Office of Foreign Assets Control (OFAC) is a formidable force, a key instrument of the U.S. Department of the Treasury in safeguarding national interests. OFAC administers and enforces economic and trade sanctions, wielding the full extent of legal authority granted by the International Emergency Economic Powers Act, and operates under the strict regulations. If your assets have been frozen by their actions, rest assured: we know how to regain control of blocked funds. With our experience and deep understanding of the legal framework, you won’t just receive assistance — you’ll get results.
How OFAC Blocks Funds?
Let’s start with the basics: an OFAC asset freeze can result from both the sanctions regulations and precise and erroneous actions. In the first instance, direct the sanctions regulations are imposed under Presidential Executive Orders (E.O.), listing individuals and entities subject to specific sanctions programs. OFAC includes them in the Specially Designated Nationals (SDN) List, leading to a total asset freeze and a prohibition on any interactions. If you find yourself in such a situation, our sanctions attorneys are prepared to help lift the freeze on grounds such as “Change in Circumstances” or “Implementation of Corrective Actions.”
In the second scenario, if assets were blocked erroneously — due to misidentification or a simple clerical error — we immediately initiate the unblocking process in accordance with 31 CFR 501.806. We know how to act swiftly and decisively to regain control over your assets.
Let’s delve into how OFAC’s asset blocking truly operates. U.S. jurisdiction financial institutions don’t just follow sanctions — they play by OFAC’s rules, updating their lists and freezing assets of those who fall under sanctions instantly. Any attempt by foreign financial institution or entity to transact with such assets without OFAC’s approval is a ticking time bomb.
All these actions are strictly regulated by 31 CFR 501.603(a)(1). Financial institutions are required to report all blocked assets. This rule applies to everyone, including banks, which must file a report with OFAC within 10 business days after the block, as stated in 31 CFR 501.603(b)(1)(i). And this report isn’t just a formality. It must contain all the details: the name and address of the asset owner, a description of the underlying transaction amount, the underlying transaction amount, the date of the block, and the estimated value of the assets in U.S. dollars, according to 31 CFR 501.603(b)(1)(ii).
The Process of Filling the Unblocking Application to OFAC
When it comes to unblocking assets, submitting a specific license or application to OFAC is one of the most direct paths. This procedure requires experience and is akin to applying for a special license: you are requesting permission to take a specific action, the specific license itself is an authorization, namely — regaining control over your funds. The application is submitted through the same online system — OFAC License Application Page, and the information provided must be so comprehensive that OFAC has no doubts that the freeze was unwarranted, or that new circumstances justify lifting the freeze.
If your funds were blocked by mistake, 31 CFR 501.806 comes into play. We prepare and submit a detailed application — a “31 CFR 501.806 — Request for a Compliance Release.” This document is sent directly via email to [email protected]. We know how to ensure that your application is heard and considered, and we will strive to have your assets and funds unblocked as quickly as possible.
Who Can make the OFAC Unblocking Application?
If your assets have been frozen under sanctions imposed by the Office of Foreign Assets Control (OFAC), the process of unblocking them may be far more complex than it appears at first glance. According to 31 CFR 501.801(b), unblocking applications can only be submitted by the asset owners themselves or their legal representatives.
But is it worth the money about the risk of trying to navigate this process on your own?
Each unblocking application must strictly adhere to the requirements of 31 CFR. Part 501, and even the slightest mistake or omission can lead to a denial of unblocking, which in turn can result in further financial losses and prolong the process for months, if not years. There is no room for experimentation or error here. Our attorneys have deep knowledge and extensive experience working with OFAC and other regulatory bodies. We know how to properly prepare all necessary documents, taking into account all legal nuances, and submit them on time to maximize the chances of a successful review of your application. We handle the entire complexity of the process, allowing you to focus on regaining access to your funds.
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The Processing Time for an OFAC Unblocking Application
The processing time for an application can be unpredictable — it depends on its complexity and how thoroughly and accurately you have provided the data. From our experience, this process can take several months, but keep in mind: the U.S. sanctions list includes over 15,000 individuals and organizations, and sometimes the unblocking process can drag on for a year or even longer. OFAC must ensure that unblocking your assets does not pose a threat to national security, and this factor will always influence the review speed.
But we don’t sit idle while waiting for a decision. We know how to optimize the process, eliminate delays, and ensure that your application is reviewed as quickly as possible. Our experience and knowledge allow us to expedite this process and help you achieve results faster than it would happen without professional intervention.
Grounds for Assets Unblocking
The grounds for unblocking assets boil down to three main arguments: Mistaken Identity, Change in Circumstances, and Implementation of Corrective Actions.
Mistaken Identity
When it comes to asset freezes due to mistaken identity, we don’t just analyze the details — we dissect them. If your funds were blocked due to name confusion, incorrect information, or simply by mistake, this shouldn’t remain on paper. We scrutinize every detail, prove that the error occurred due to the system’s flaws or the bank’s over-caution, and pursue justice. In such cases, we work not just with the letter of the law, but with its spirit, to restore your name and assets on how to unblock funds in bank account where they belong — under your full control.
We know how to engage with regulatory bodies like OFAC to engage this, and we don’t just request a review — we demand it. The unblocking request must be flawless: all evidence, arguments, and references to legal norms must be aligned in an ironclad defense. We ensure this.
Change in Circumstances
When circumstances have changed and sanctions are no longer warranted, this needs to be not just proven, but presented in a way that leaves OFAC with no doubts. The cessation of activities that led to the sanctions and freeze, changes in corporate policy, or other significant changes — all of this must be formulated into a clear strategy aimed at your protection.
We prepare an action plan that not only reflects the changes but demonstrates that they were inevitable and significant enough to warrant a review of the sanctions. If necessary, we will go beyond standard procedures and find unconventional solutions to reach the goal. In this matter, there is no room for mediocrity — what’s needed is precise calculation and confidence in every step.
Implementation of Corrective Actions
This could involve leadership, foreign policy changes, asset sales, corporate restructuring—every action must be carefully planned and executed to ensure that no one doubts the seriousness of your intentions.
When we present your case to OFAC, we do so with full confidence that all possible measures have been taken, and each of them is supported by documentation. We leave no room for interpretation or doubt and drive the case towards the outcome — unblocking the assets and fully restoring your business.
We know what’s at stake, and that’s why we don’t stop until we achieve our goal. If it requires using the power of law and logic to make justice prevail — we’ll do it, and we’ll do it right.
What to Include in Unblocking Application OFAC
Our sanctions attorneys don’t just submit unblocking applications to OFAC — we meticulously prepare every detail of license applications to ensure full compliance with the requirements of 31 CFR 501.801 and 31 CFR 501.806. We understand that in this game, there is no room for mistakes, and every document must be scrutinized down to the last comma.
When we submit an application under 31 CFR 501.801, we don’t just fill out a form — we provide comprehensive legal data about the applicant, including name, address, and authorized contact information (31 CFR 501.801(b)(2)). If we submit the application on behalf of a client, we disclose all our data as agents, as well as the client’s data, who acts as the principal (31 CFR 501.801(b)(2)(ii)). All blocked assets and transactions are described with precision down to the last identifier, including transaction numbers in the ORS system. The justification for the request is not just words but clear legal and factual arguments supported by applicable regulations and executive orders.
When it comes to erroneous asset blockings, we act in accordance with 31 CFR 501.806 and represent the client’s interests. In the application, we detail the assets, precisely matching the data previously submitted to OFAC (31 CFR 501.806(d)(1)-(3)). We also include all ORS identification numbers (31 CFR 501.806(d)(5)) and provide complete client information (31 CFR 501.806(c)), including identification if required (31 CFR 501.806(d)(4)). To support our request, we prepare a robust justification with a detailed explanation of the reasons for the freeze and attach all necessary supporting documents, identifying documentation such as contracts and bank statements (31 CFR 501.806(d)(7)).
In any case, as your sanctions attorneys, we guarantee that every step complies with procedural requirements.
Possible Challenges and Complications
If you have ever dealt with OFAC and the asset unblocking process, you know that it is not just a bureaucratic formality. It is a complex, sometimes exhausting procedure that requires patience and precision. One of the main challenges we face is that your applications for a special license are processed alongside numerous other applications. Imagine a long queue where each case requires attention and time. Your application becomes part of this queue, waiting its turn among others who are also trying to conduct business or resolve their financial institution issues. For many of our clients, especially those with significant sums in blocked accounts, each day of delay can have serious financial consequences. In some cases, the process can take up to six months before you receive a response from OFAC, even if the financial institution’s error is obvious and requires immediate correction. We understand how frustrating this can be. That’s why our team takes on the full burden of the process, from start to finish. We know how to expedite the review of your case, how to make your application stand out among others, and how to ensure that all documents are provided in full. Our goal is not just to go through this process but to achieve a positive outcome in the shortest possible time.
Contact Sanctions Lawyers
We fully understand that dealing with sanctions and unblocking assets requires not only knowledge of the law but also the application of sophisticated strategies, born at the intersection of legal logic and practical experience. Our attorneys are professionals who have honed their skills over years of resolving the most challenging cases in this field, combining meticulousness in using relevant information and analyzing legal norms with insight in developing tactics.
When you turn to us, you receive not just legal services but comprehensive support from a team for whom the successful resolution of your issue is not just a job but a calling. We approach each client with care, developing individual strategies that not only meet your needs but also anticipate potential risks. Each application we prepare undergoes multiple reviews to eliminate any flaws, and we accompany you at every stage, minimizing potential obstacles and accelerating the achievement of a positive result.
In the world of complex legal processes, we are your reliable partner, always one step ahead, anticipating problems and offering solutions that work.
OFAC Blocked Funds FAQ
To release a blocked fund, you need to submit an unblocking application to OFAC. This application is treated similarly to a specific license application, providing all necessary information for OFAC to determine the appropriateness of the blocking based on the transaction. If approved, OFAC will grant a specific license authorizing the release of the blocked funds.
When funds are blocked, they are effectively frozen, preventing the sanctioned individual or entity from accessing or using the funds. This isolation from the global financial system hampers the sanctioned party's ability to finance their operations or conduct business.
To be blocked by OFAC means that an individual or entity is subject to economic sanctions due to their involvement in or support of illicit activities such as terrorism, narcotics trafficking, or weapons proliferation. As a result, their assets are frozen, and they are prohibited from engaging in financial transactions with U.S. persons or within U.S. jurisdiction.
