What is an OFAC license?
The significance of obtaining OFAC clearance, better known as being removed from U.S. sanctions, is crucial for individuals and organizations that fall under the restrictions imposed by the Office of Foreign Assets Control. OFAC is a part of the U.S. Department of the Treasury responsible for implementing and enforcing financial sanctions against countries that violate certain norms. Obtaining OFAC clearance is essential for those wishing to restore economic relations after being placed on the SDN (Specially Designated Nationals) list.
What are the criteria for obtaining an OFAC license?
To obtain an OFAC license, it’s necessary to meet the requirements, which depend on the specific case.
Lack of sufficient grounds for placement on the SDN list
The Specially Designated Nationals and Blocked Persons (SDN) list includes individuals and organizations that, according to the Office of Foreign Assets Control (OFAC), are involved in activities contrary to the interests of the United States. If you can prove that the initial reasons for being placed on the SDN list were insufficient or mistaken, this could serve as grounds for lifting the sanctions. For example, this might be possible if the actions that led to your inclusion on the list are no longer relevant or were misinterpreted.
The original reason for inclusion is no longer valid
In some cases, the original reason for being placed on the SDN list may no longer be valid. This can happen if the issue that led to your inclusion on the list has been changed or resolved. For example, if the policies or actions that resulted in sanctions have changed, or if you have met the conditions set for lifting the sanctions, this could serve as a basis for requesting removal from the list. It’s necessary to provide OFAC with sufficient evidence proving that the original reason for the sanctions is no longer relevant.
Incorrect identification
Mistaken identity is another reason to request an OFAC license. This happens when an organization or individual is wrongly added to the SDN list due to name similarities, incorrect information, or other errors. In such cases, you need to provide evidence proving that a mistake was made and that the sanctions should be lifted. For example, if your name matches that of someone actually involved in illegal activities, and you can prove it’s a mix-up, OFAC might consider your request for clearance.
A deceased person who is subject to sanctions
A person might be removed from a sanctions list if they die. After someone’s death, sanctions usually become pointless. In such cases, it’s necessary to provide OFAC with proof of the person’s death and request their removal from the list.
What You Need to Know About the OFAC Licensing Process
The process of obtaining an OFAC license requires careful consideration and preparation. Here are a few key points to keep in mind:
- Documents and Preparation
To apply for an OFAC license, you need to prepare and submit a range of documents: court decisions, documents proving the completion of certain actions. The applicant must demonstrate that their situation meets the criteria for obtaining an OFAC license. - Processing times
The process of obtaining an OFAC license can vary in duration depending on the complexity of the case and the completeness of the information provided. Typically, the process takes several months. Applicants should be prepared for the review time to vary based on the specifics of their case and the level of detail in the information submitted. - The Role of Experienced Lawyers
To successfully obtain OFAC authorization, it’s recommended to consult with qualified sanctions attorneys. Professional lawyers will provide you with legal protection and assist in preparing the necessary documents, offering consultations, and interacting with OFAC. Choosing the right lawyer can significantly increase your chances of achieving a positive outcome.
