OFAC SDN List Removal Lawyer
Sanctions serve as legal enforcement tools that impact states, organizations, and individuals, and are enacted through Executive Orders (E.O.) by powers granted to the President. A crucial tool in this process is the Specially Designated Nationals and Blocked Persons List (SDN List). The assets of individuals and entities included in the OFAC sanctions and SDN List are subject to comprehensive blocking, and U.S. persons are prohibited from engaging in any transactions with them.
The Office of Foreign Assets Control (OFAC), operating under the U.S. Department of the Treasury, is a key agency responsible for implementing and enforcing economic and trade sanctions aimed at supporting U.S. national security and foreign policy.
Despite the stringent nature of the sanctions, our sanctions attorneys successfully handle any OFAC delisting to get you off the SDN List, offering you the best solutions through the expertise of our experienced sanctions lawyers.
What is the OFAC SDN List?
Published by the OFAC, a specially designated national list is a comprehensive registry that contains names of people, entities, and groups that are deemed to be involved in actions that threaten or undermine the US government, its foreign policies, or national security objectives.
Individuals, entities, organizations, or governments appearing on the OFAC sanctions list can face significant and far-reaching consequences that can impact their social and economic lives. That’s because US citizens, businesses, and financial institutions are prohibited from engaging in any business or financial transactions with any person blocked by the OFAC. That also applies to any business entity where the listed person’s controlling interest exceeds 50%.
That means any funds, assets, or bank accounts within the U.S. territories or those that go through American-based financial systems will be blocked (frozen in an interest-bearing account) as long as you’re on the SDN list. Additionally, OFAC provides individuals, businesses, and financial institutions with resources to confirm whether any person or entity is on the SDN List.
Remember, the strength of the OFAC sanctions list lies in the effectiveness of automated systems that screen for any blocked entity or person, making enforcement highly efficient. That highlights the importance of adhering to OFAC economic regulations for every major financial institution globally to avoid the hefty financial, criminal, and social obligations that non-compliance may impose.
The SDN List Removal Process
The OFAC delisting procedure is a lengthy and complex legal process that may take anywhere from six months to years. The process involves a submission from a person seeking an OFAC delisting or representation from OFAC attorney with a clear understanding of the proceduresи governing delisting from the Office of Foreign Assets Control list.
Nonetheless, the OFAC delisting process involves some degree of data disclosure that will be crucial in building a strong case. That includes information on your current business processes, financial transactions, and corporate changes while ensuring confidentiality.
According to CFR 501.807, the OFAC procedures governing delisting involve several key steps that must be executed accurately and sequentially. Our experienced lawyers provide professional assistance ranging from submitting a detailed request to the OFAC review process and legal defense, ensuring the protection of clients’ interests and maximizing the chances of success.
Here is what the whole process entails with the help of our international attorneys:
1. Identifying Grounds for Removal from the OFAC sanctions List
The first step is a detailed analysis of OFAC regulations and identification of the reasons for the decision to include you in the Sanctioned Persons List. This process is followed by determining the grounds for exclusion based on the analysis of the provided information.
Our sanctions attorneys work with three main OFAC’s determination categories for possible removal from the SDN List strictly in compliance with 31 CFR 501.807. That includes:
- Mistaken Identity
- Change in Circumstances
- Implementation of Corrective Actions
2. Preparing the SDN List Removal Application
Ensuring that you have grounds for administrative review, our sanctions attorneys will compile a strong personal case and prepare a detailed application for removal or designation from the SDN List to OFAC, ensuring that all arguments are clearly presented and supported by relevant regulations, procedures and precedents — this is a critical stage requiring a professional perspective and meticulous elaboration of all details involved.
3. Communication with OFAC representation
We manage all interactions with OFAC on your behalf, submitting the official application to OFAC via email at [email protected]. We provide complete documentation in accordance with established requirements.
In compliance with 31 CFR 501.807(b)(1), we handle all inquiries related to requests OFAC may make in the form of questionnaires, containing a list of questions regarding changes that have occurred that OFAC wants to clarify, additional evidence, or explanations, considering the confidentiality of your business activities, and we are ready to prepare and respond to them in the most favorable form and in the shortest possible time.
4. Conducting OFAC Hearing or OFAC Interview
Although a meeting with OFAC is not mandatory, parties to the subject may request it for a personal discussion of case details. However, OFAC reserves the right to refuse a meeting until the case analysis is complete (31 CFR 501.807(b)(2)).
After completing the review, OFAC provides a written decision on the outcome of the petition review and removal from the SDN List. This decision will be based on the analysis of all submitted evidence and legal arguments (31 CFR 501.807(b)(3)), so it is crucial to have an experienced sanctions attorney accompany you.
Grounds for Removal from OFAC’s SDN List
OFAC meticulously examines each individual included in the SDN List and cannot simply remove you from this list without considering compliance with sanctions‘ special requirements. Therefore, sanctions attorneys will present compelling arguments for your removal from the SDN List based on three available grounds:
Mistaken Identity
If there are grounds, we will build your case to correctly argue that you were included in the list due to insufficient or incorrect information or mistaken identity, when you were confused with another person, due to name similarities, or other errors related to “soft alias” or “soft aka.”
We also handle erroneous asset blocking based on 31 CFR 501.603. Our sanctions attorneys submit a request for the release of assets blocked by mistake.
Change in Circumstances
Sanctions programs and releases regarding inclusion in sanctions lists contain sufficient information that OFAC refers to when including you in sanctions lists, which may undoubtedly cause you to disagree. However, if a person believes that there are changes in the circumstances resulting to the sanction, they can petition the OFAC for a removal from the list.
Implementation of Corrective Actions
We will submit a statement to OFAC, considering specific corrective actions taken to address the issues that led to sanctions, such as corporate reorganization, the resignation of individuals holding positions of ownership in the blocked organization, and the sale of blocked property on the condition that funds are credited to a blocked interest-bearing account.
OFAC SDN List Removal Lawyer
The attorneys in our Sanctions law firm have many years of experience and an impeccable reputation in international law, offers highly specialized services for removal from the Specially Designated Nationals and Blocked Persons List (SDN List) of the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury.
We understand that being on the SDN List can have serious consequences for a company, business and reputation, so our approach is based on a detailed study of each client’s individual circumstances. We offer comprehensive support, including the preparation of necessary documents, representation in negotiations with regulatory authorities, and, if necessary, legal representation in court.
We are confident in our ability to provide you with qualified assistance and help achieve a positive result. To discuss your needs and receive personalized consultation, please contact our lawyers. We are ready to offer you our experience and professionalism for the successful resolution of your case.
OFAC SDN List Removal FAQ
To get off the SDN List, you need to submit a formal request for reconsideration to OFAC, providing evidence demonstrating that you no longer meet the criteria for designation. Engaging the services of an experienced OFAC lawyer can significantly improve your chances of a successful outcome.
Common mistakes include engaging in prohibited activities, associating with sanctioned individuals or entities, or failing to implement robust compliance programs to prevent sanctions violations.
No, being served with an OFAC administrative subpoena is not the same as being placed on the SDN list. The subpoena is a request for information related to a potential sanctions violation, while the SDN list includes designated individuals and entities subject to sanctions.
The time it takes to get removed from the OFAC SDN list varies depending on the complexity of the case, the quality of the evidence provided, and OFAC's workload. It can range from several months to a few years.
While it is not legally required, hiring an experienced OFAC lawyer can significantly improve your chances of a successful outcome by helping you navigate the complex delisting process and effectively advocating on your behalf.
To qualify for SDN list removal, you must demonstrate that you no longer meet the criteria for designation by providing persuasive evidence and submitting a formal request for reconsideration to OFAC.
There is no formal appeal process; however, you can submit additional evidence and request further reconsideration if you believe the denial was based on insufficient or incorrect information. Consulting an experienced OFAC lawyer can help you determine the best course of action in such cases.
