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Every individual or company in the USA, as well as anyone with limited connections to the said country, may encounter issues with the enforcement of sanctions imposed by OFAC. Such sanctions can be either justified or not. To avoid payment stops, protect the firm’s reputation, and prevent serious negative consequences, seeking advice from an OFAC sanctions lawyer would be beneficial.
The solicitors at Intercollegium have years of experience in defending clients during OFAC investigations, as well as providing assistance in ensuring individuals’ and companies’ activities comply with current OFAC regulations. This helps to minimise the risk of financial losses and maximise the continuity of business operations.
What is OFAC?
The Office of Foreign Assets Control (OFAC) is an office of the U.S. Department of the Treasury. It administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy, or economy of the United States. OFAC acts under the president’s national emergency powers, as well as authority granted by specific legislation, to impose controls on transactions and freeze assets under U.S. jurisdiction.
The Scope of OFAC’s Jurisdiction
The jurisdiction of OFAC encompasses a broad range of activities and entities that may be subject to checks and sanctions. Primarily, the following are not exempt from OFAC scrutiny.
- individuals and companies working with entities included in the sanctions list;
- US business represented abroad;
- companies and individuals working in the field of electronic product sales and the provision of electronic services;
- entities that have already violated OFAC regulations.
Types of OFAC Sanctions
Among the sanctions, as an important tool of US foreign policy, are distinguished: country-based sanctions, smart sanctions, sectoral sanctions, and secondary sanctions.
Country-based Sanctions
Country-based sanctions are those imposed on specific nations, prohibiting unauthorised operations within them. To such countries belong Cuba, Russia, Iran, China, North Korea, Somalia.
It should be noted that sanction programmes are dynamic and change depending on the political situation. In this context, country-based sanctions are typically accompanied by sanctions against specific individuals and companies. As a result of economic sanctions by OFAC, the assets of Russian organisations and individuals, amounting to tens of millions of dollars, have been frozen.
Smart Sanctions
Targeted sanctions are designed to prevent specific threats to national interests and particularly relate to countering terrorism, international organised crime, human rights violations, etc. For instance, OFAC has imposed sanctions against North Korean hacking groups.
Sectoral Sanctions
Sectoral sanctions are targeted at specific sectors of a country’s economy and restrict the ability to conduct business in certain industries. In particular, these sanctions have been imposed against the Russian energy sector.
Secondary Sanctions
The use of OFAC secondary sanctions, aimed at holding those who collaborate with violators accountable, is rare. Thus, an oil company could be subject to secondary sanctions if it supplies oil to North Korea, as this is prohibited by OFAC.
What Transactions are Subject to OFAC Sanctions?
Operations that fall under OFAC sanctions primarily involve those connected with states, companies, or individuals listed in the so-called SDN list. Generally, being included on this list indicates that the activities of the person or firm mentioned were directed against the sanction policy of the USA or against the foreign policy of the state. As a result, measures are taken against such individuals or organisations to prevent their access to the international market.
Working with sanctioned individuals is prohibited. Therefore, the assistance of a qualified solicitor, who is knowledgeable about OFAC law and will defend your rights in the event of encountering prohibited transactions – those operations that violate established rules and in which participation is not possible unless permitted by OFAC, is of paramount importance.
The Possible Outcomes of OFAC Sanctions
If you don’t consult an OFAC solicitor in time, the consequences of sanctions enforcement can be serious and may include:
- prohibition on conducting business activities;
- freezing assets of businesses or designated individuals;
- prohibition on providing assistance to individuals subject to sanctions.
The offender may be held liable under civil or criminal law, with penalties including fines of up to 1 million US dollars or even imprisonment for a term of up to 20 years.
Seeking advice from lawyers who specialise in OFAC sanctions can help avoid serious financial repercussions and prevent legal issues from arising. The Intercollegium team is steadfastly by your side!
OFAC Licence
OFAC Licence is a permit issued by OFAC that allows for certain transactions that would otherwise be prohibited without it. It can grant the right to enter into contracts with companies that have been sanctioned. There are general and specific licences.
Given the US sanctions legislation, individuals and companies can be subjected to sanctions for various reasons. A common outcome is being added to the OFAC SDN list, which can halt business operations. In such cases, a special OFAC license is required to continue lawful activities. Additionally, banks may freeze funds citing sanction rules and not unfreeze them until a special OFAC license is provided.
Thus, the licence creates a legal basis for freely conducting transactions which, without it, would be prohibited by sanction requirements.
The solicitors at Intercollegium guide clients through the entire process of obtaining a licence from OFAC, ensuring legal support and protection of the clients’ interests. OFAC lawyers provide comprehensive services that include:
- consultations regarding the necessity of obtaining a licence for a specific business;
- preparation of the application for a licence and supporting documents for submission to OFAC;
- representation of an individual or firm in OFAC and in judicial bodies;
- implementation of sanctions compliance in the company’s operations;
- protecting clients’ interests in the investigation process conducted by OFAC.
How to Obtain a License?
The process of obtaining a licence requires the submission of an application and accompanying documents, which depend on the specifics of the case. The steps involved in submitting an application include investigating the necessary case details, analysing the company’s founding documents, information about the founders, and bank accounts with frozen funds. In communicating with the client, institutions, and authorities, lawyers also gather additional information needed to obtain the permit.
After submitting an application along with supporting materials, the stage of its consideration can be tracked on the OFAC website. The decision-making process depends on the workload of the body and can take up to a year.
The solicitors at Intercollegium specialising in obtaining OFAC licences offer a comprehensive range of services for advising and supporting the process of obtaining OFAC approval for the issuance of the document.
Who Should Apply For a Lisence?
An OFAC licence is required to unblock assets that have been frozen due to the imposition of sanctions, or to conduct activities that are prohibited under sanctions legislation. Thus, applications for a licence are submitted by individuals and companies that are subject to sanctions restrictions.
It’s absolutely crucial for those involved in importing or exporting goods to adhere to OFAC regulations. Ignoring OFAC regulations can lead to a host of problems, such as:
- Difficulties with importers accepting goods that have arrived on vessels chartered by countries subject to sanctions.
- Imposing fines on exporters working with individuals on the SDN list.
- Imposing fines on exporters working with individuals on the SDN list.
Which of our lawyers work with OFAC Sanction?
Dmytro Konovalenko, is a lawyer with many years of experience in dealing with the OFAC and other Sanction regimes.
Anatoliy Yarovyi, lawyer, Doctor of Laws. Anatoliy specializes in appeals against International Sanctions, expecially OFAC Sanction regulations.
Removal From the OFAC List
Removal from the OFAC list is a complex and lengthy process. The removal procedure may require changes in operations, the organisational structure of the company. Therefore, this process demand conducting a business audit, reviewing relationships with counterparties, and implementing compliance measures.
Given the complexity of the procedure, it’s absolutely crucial to seek out the finest OFAC solicitors. The professional lawyers at Intercollegium will not only assist in correctly preparing all the necessary documentation but will also represent the client, enhancing the chances of a successful removal from the list and will do everything possible to minimise any potential delays in the process.
Looking for an OFAC Solicitor?
If you’ve encountered issues with sanctions imposition or need to obtain an OFAC licence, reach out to qualified solicitors. The Intercollegium team will investigate your issue and help resolve it.
Why you should choose the services of Intercollegium solicitors:
- successful experience in resolving issues with OFAC delisting and obtaining licences;
- thorough knowledge of sanctions legislation and the practice of its application;
- a tailored approach to the client with the development of an effective defence strategy;
- assistance in avoiding mistakes that could lead to the loss of time and money.
Our lawyers will conduct a professional audit of business processes, prepare the necessary documentation for OFAC, will assist in obtaining the necessary licences and will represent the client’s interests at OFAC. Contact us to receive advice from an experienced solicitor!
FAQs
How to Get an INTERPOL Background Check?
To get an INTERPOL background check, it is necessary to submit your request to the Commission for the Control of INTERPOL (CCF). The request must meet Inteprol requirements. It is advisable to consult a lawyer who specializes in international law or criminal records. A lawyer can help you understand the requirements, ensure all necessary documents are correctly submitted, and assist in addressing any legal implications that may arise from the background check.
What Does INTERPOL Actually Do?
INTERPOL facilitates international police cooperation to combat transnational crime. It maintains crime databases, issues notices like Red Notices for arrest, coordinates international operations, provides training and resources, focuses on specific crimes with specialized units, operates a secure communication network, and assists in disaster response.
How Does INTERPOL Work?
INTERPOL operates by facilitating international law enforcement cooperation among its member countries. Each member country has an NCB (National Central Bureaus) that serves as the main point of contact with INTERPOL. Organization maintains databases on criminals, stolen property, missing persons, fingerprints, and DNA profiles, accessible to all member countries. INTERPOL issues various notices, such as Red Notices for locating and arresting individuals, and other notices for identifying persons or warning about criminal activities. It supports international operations, joint investigations, and provides specialized training and resources.
What is an INTERPOL Red Notice?
An INTERPOL Red Notice is a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action. It is issued at the request of a member country based on a valid national arrest warrant.
How do I challenge an Interpol Red Notice?
We can help you find out if you have a Red Notice. We can also make a preliminary request. It is often the case that, before being placed on the Interpol wanted list, a person, due to the existence of high profile or politically motivated criminal proceedings infected against them, admits to being placed on the red notice wanted Interpol red list. Given this fact, he is entitled to apply to the Commission for an advance. Upon receipt of information about a false or unconfirmed accusation, a special Interpol Red Notice advice may decide to remove the suspect from the Interpol red notice list. This helps to block Red Notice and prepare your defense. In addition, we can help you to prepare your case and appeal against your unlawful Red Notice. Interpol red notice investigation law firms can also provide Interpol red notice defense.
