Adhering to sanction measures is strategically vital for the long-term sustainability of businesses, ensuring legal compliance and minimizing potential financial risks. In this context, the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury plays a central role in regulating international business and u.s economic sanctions and trade operations. OFAC enforces sanction measures aimed at protecting U.S. national security and foreign policy interests, administering 37 different sanction programs that cover various countries, regimes, and activities, thereby limiting economic relations and otherwise prohibited transactions with entities subject to U.S. sanctions.
There are exceptional cases where sanctions permit certain operations or their completion under what is known as a OFAC General License. Simultaneously, if the activities or transactions in question exceed the provided authorizations under economic sanctions or require the unblocking of foreign assets control otherwise prohibited transactions, obtaining a OFAC Specific License may be necessary.
If you aim to ensure full compliance and minimize risks, our lawyers are ready to provide comprehensive legal support.
A General License is a regulatory authorization issued by OFAC that allows certain categories of persons or organizations to conduct specified transactions without the need to submit an individual request. Such licenses automatically apply to designated persons or organizations in accordance with OFAC’s regulatory acts. General Licenses significantly simplify the compliance process by providing blanket authorization for specific types of activities.
Important: The application of these licenses is associated with numerous legal and operational complexities, such as the necessity to strictly adhere to all established conditions and restrictions, as even minor deviations can lead to serious legal consequences, with criminal penalties including significant fines, civil or criminal penalties, and other sanctions. Moreover, there is an obligation to continuously monitor changes in OFAC regulations and regulatory acts, which are periodically updated, requiring organizations to continuously adapt their operations to new regulatory requirements.
For example, the following cases illustrate the use of General Licenses:
Read the full text of General License № 8K Authorizing Transactions Involving Petróleos de Venezuela, S.A. (PdVSA) Necessary for the Limited Maintenance of Essential Operations in Venezuela or the Wind Down of Operations in Venezuela for Certain Entities on the official OFAC website.
Read the full text of General License №20 Authorizing Transactions Involving Afghanistan or Governing Institutions in Afghanistan on the official OFAC website.
Read the full text of General License №6B Transactions Related to Agricultural Commodities, Medicine, Medical Devices, Replacement Parts and Components, or Software Updates, the Coronavirus Disease 2019 (COVID-19) Pandemic, or Clinical Trials on the official OFAC website.
Our experts can help you effectively utilize this and other licenses to ensure what is ofac license and your operations comply with all the OFAC regulations sanctions laws and requirements.
To determine whether your activities fall under a general license and to avoid unnecessary risks, contact our specialists. We will help you assess the compliance of your activities with general license requirements and provide professional support at every stage.
A Specific License or specific license issued by OFAC is an individual written authorization intended for a specific person or organization based on a submitted and thoroughly reviewed request. This authorization is necessary for unique situations license applications that are not covered by the aforementioned general licenses. The procedure for obtaining a one ofac specific licenses or license involves several critical stages, each requiring meticulous preparation and highly qualified, legal counsel and support.
Our sanctions lawyers conduct a detailed analysis to determine the need for a specific license for a particular transaction, considering the specific conditions of the applicable various and economic sanctions laws and regimes and the possibility of using general licenses if available. We then compile a comprehensive set of documentation, including all aspects of the planned transaction, such as a description of the deal, identification of all participants, including intermediaries and ultimate beneficiaries office of foreign assets, and detailed justification of the legality and reasonableness of the proposed transaction. At this stage, it is critically important to ensure the accuracy and completeness of the provided information, as any omissions or errors can significantly complicate the application review process and lead to its rejection.
After gathering all necessary documentation, an application is prepared, representing an official document in the form of a letter that must include a detailed exposition of all aspects of the planned transaction, legal arguments justifying the necessity of its implementation, and an explanation of how this proposed transaction aligns with U.S. political and economic interests and does not violate established sanction regimes. The application is submitted to OFAC, where it undergoes thorough analysis. It is important to consider that the application review process can take considerable time, especially for complex transactions, and on average, can range from several months to a year and is a final decision which still can be reconsidered in light of exceptional new circumstances.
Given the high complexity and multi-stage nature of the process of obtaining a specific, OFAC license status, it is strongly recommended to engage experienced sanctions lawyers who possess deep knowledge in the field of sanction legislation and the OFAC sanctions license status procedures. Professional legal support from Sanctions Law Firm can significantly increase the likelihood of successfully obtaining a license, minimize the risks of delays and rejections, and ensure full compliance with all OFAC regulatory requirements.
We have recently assisted the two ofac licence ofac licenses the following parties in obtaining OFAC licenses:
To a specific license to apply for an OFAC license, a comprehensive request is required, detailing the transaction with full data on all involved parties involved, including names, addresses, and the nature of participation between sanctioned parties. The request can be sent in writing to Office of Foreign Assets Control U.S. Department of the Treasury or online using the OFAC License Application Page
We prepare the necessary documents, including technical-economic justifications, commercial invoices, product specifications, and other supporting materials.
The application process begins with a preliminary analysis of the compliance of your transaction with the requirements of the OFAC-administered sanction programs. We advise on the correct category of license to apply for, whether it be unblocking funds, exporting agricultural and medical goods to certain countries, or other types of prohibited transactions. After that, we assist in filling out the online license application, through the OFAC portal, ensuring it meets all regulatory requirements and preventing possible errors that could lead to delays in consideration of license applications.
We provide continuous support and inform you of the license application and status at every stage, promptly responding to any requests or additional requirements from regulatory authorities.
To verify the authenticity of an OFAC-issued license, contact the OFAC Licensing Division at 1-202-622-2480, providing the case identification number or license number for verification. To verify the authenticity of removal from the SDN list letters, send a request to [email protected]. For verification of other already obtained OFAC licenses or documents, contact the OFAC Compliance Division at 1-202-622-2490. To check the status of a your license application, you can use the official: OFAC license application portal by entering the case number in the YYYY-999999 format on the Check Application Status page.
Compliance with OFAC sanctions requirements necessitates strict record-keeping and regular reporting, and the absence of such may be qualified by OFAC as a separate and explicit violation of the law in addition to any substantial sanctions violations.
Companies are obliged to exercise caution and regularly check the lists of persons and organizations subject to OFAC sanctions to avoid interaction with blocked persons or sanctioned parties or organizations. This includes checking the Specially Designated Nationals and Blocked Persons (SDN List) and other OFAC sanction lists. Companies must keep detailed records of all transactions and even provide reports upon request to OFAC for the past 5 years. To fully comply with your activities, we recommend having a professional lawyer specializing in OFAC and sanctions laws, who will accompany you in your business activities. In the absence of one and in the event of questions regarding OFAC’s sanction policy or identification of violations of OFAC requirements, you should immediately contact such specialists to minimize consequences and risks.
Our lawyers will help you implement all necessary procedures and ensure full compliance with OFAC requirements.
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Violation of OFAC general license requirements and conducting operations without the necessary amount ofac specific license can result in serious legal and financial consequences, including significant fines and criminal prosecution. Violators are subject to enforcement measures, including asset freezes and business restrictions.
OFAC Licensing Attorney
To ensure complete legal and financial security, contact highly qualified lawyers from Sanctions Law Firm specializing in OFAC licensing lawyers and sanctions issues. Our experienced specialists will assist you in submitting applications, ensure compliance with all requirements, and provide consultations on all aspects of OFAC licensing lawyers trade sanctions compliance.
By contacting our lawyers, you will receive guaranteed support and professional advice that will help you avoid legal risks and ensure successful international business operations on the top international business stage.
