Criminal Defense Lawyers

Challenges and Reform

Dealing with an OFAC Designation – What You Need to Know

Getting hit with an OFAC designation can be a nightmare. One day you’re going about your business as usual, and the next your assets are frozen and you’re cut off from the U.S. financial system. Yikes!If this has happened to you, take a deep breath. Although the situation seems dire, there are ways to challenge an OFAC designation and get removed from their naughty list. This guide will walk you through the process step-by-step. Just think of me as your trusty attorney – minus the fancy law degree and expensive hourly fees.

What the Heck is OFAC?

Let’s start with the basics. OFAC stands for the Office of Foreign Assets Control, which is an office within the U.S. Department of the Treasury. These folks administer and enforce economic sanctions against foreign countries, regimes, terrorists, drug traffickers, and other shady entities.Specifically, OFAC acts under presidential national emergency powers and legislation to do things like:

• Freeze assets under U.S. jurisdiction
• Impose controls on transactions
• Generally prohibit U.S. persons and companies from dealing with sanctioned parties

So in simple terms, being designated by OFAC means you’re on their sanctions list. This cuts you off from the U.S. financial system and prevents most U.S. companies from doing business with you. Not good.

Digging into Your Specific Designation

The first thing you need to do is understand exactly why OFAC targeted you. Start by reviewing the Federal Register notice about your designation closely. This will explain:

• The legal authority OFAC is using to sanction you
• The specific allegations or reasons for your designation
• Which OFAC sanctions list you’ve been placed on

Each OFAC list has different prohibitions, so it’s important to know which one applies to you. For example, take a look at a few of the most common lists:

• Specially Designated Nationals (SDN) List
• Foreign Sanctions Evaders (FSE) List
• Sectoral Sanctions Identifications (SSI) List

I’d recommend getting an experienced OFAC attorney on your team to analyze the designation and help formulate a game plan. They can also request your administrative record from OFAC to dig into the “why” even more.

Building Your Case for Delisting

Now comes the fun part – compiling evidence and arguments for why OFAC should remove you from their list.According to OFAC, each delisting request is reviewed individually based on its merits. Some potential avenues to explore include:

• Incorrect basis: Demonstrating the reasons for your designation were wrong or no longer apply.
• Change in circumstances: Showing you’ve significantly changed your status, behavior, severed problematic relationships, etc. since the designation.
• Mistaken identity: Proving OFAC designated the wrong person or entity with a similar name by mistake.
• Due process concerns: Explaining how your designation violated due process rights under the U.S. Constitution or administrative law.
• Future compliance: Emphasizing the compliance program you’ve implemented to avoid any prohibited dealings going forward.

Your attorney can help gather relevant documents, records, affidavits, and other evidence to convincingly make your case across these fronts.

Submitting Your Petition

Once your evidence and arguments are lined up, it’s go time – your attorney can draft a formal petition to OFAC requesting delisting. The key elements to cover include:

• Identifying information
• Date of your designation
• Detailed description of why you should be removed
• Copies of supporting docs and materials

You’ll need to mail the original petition plus one copy to OFAC – they don’t accept electronic submissions. Make sure it’s well-organized, compelling, and addresses any holes or weaknesses up front.

The Waiting Game

After the petition is submitted, OFAC will send you an acknowledgment letter. Then comes the hard part – waiting for their decision.OFAC claims it usually takes around 6 months, but some cases drag on over a year. As tough as it is, avoid pestering them for constant status updates. That could actually slow things down. Be patient and let your attorney handle any inquiries.In the meantime, keep your nose clean! Strictly abide by all OFAC restrictions still in place to avoid undermining your own petition.

Removing the Training Wheels

If OFAC grants your wish and you’re delisted, congrats! But don’t get too cocky – you’ll need to be extra vigilant about compliance going forward, including:

• Maintaining your OFAC compliance program
• Staying up to date on changing OFAC regulations
• Performing regular audits to catch any weaknesses
• Continually training employees on requirements
• Consulting counsel immediately if any concerns arise

Think of it like riding a bike without the training wheels for the first time. Freedom! But also increased responsibility. Stay focused on compliance and you’ll avoid any nasty spills.Whew, that was a lot of information to cover. The OFAC delisting process can be long and frustrating, but taking the right steps with experienced legal guidance gives you a fighting chance. Don’t let the man keep you down! Feel free to reach out if you need any help getting started.