The Office of Foreign Assets Control (OFAC), an agency of the United States Department of the Treasury, is tasked with the regulation and enforcement of U.S. economic sanctions and trade embargoes involving foreign countries and targeted persons. The agency takes action in an effort to achieve the national security goals and foreign policy objectives of the United States. Its legal authority is derived from different places, ranging from executive orders to legislation to international agreements.
The sanctions imposed by the Office of Foreign Assets Control involve a complex and ever-changing set of rules, regulations, and foreign policy developments. They also involve an ever-changing list of persons and countries of interest. Any individual, organization, or foreign entity which becomes a real or perceived threat to national security, U.S. foreign policy, or U.S. economic policy can be sanctioned. When dealing in international business matters and transactions, one must be aware of, anticipate, and be in constant compliance with all OFAC laws and regulations. Staying well-informed of shifting policies may be a challenge, but a knowledgeable OFAC lawyer can provide sound counsel to help with specific licensing, issues with current foreign activities, and other legal needs.
The combination of rapidly evolving sanctions programs, broad prohibitions, and strict liability means a person or entity can be in violation of the most up-to-date sanctions without actually knowing a violation has occurred. It can be particularly difficult for those dealing with foreign entities to stay abreast of the latest OFAC sanctions. If you have a business or are a representative of a financial institution or entity that requires assistance with compliance measures regarding U.S. sanctions, or you have been notified that you are under investigation regarding alleged violations of these rules, contact a dedicated OFAC lawyer immediately. This may come in the form of a notice on your credit report.
An OFAC law firm may provide legal advice and counseling regarding international business matters, as well as assist with the following:
U.S. citizens, as well as those with interests or property which fall under U.S. jurisdiction, are subject to OFAC sanctions. Therefore, in dealing with international matters, it is best to proceed with an extra measure of caution. Obtaining knowledgeable legal counsel from an OFAC lawyer regarding the latest national security controls imposed by the U.S. Government may be the best way to avoid possible penalties such as fines, the freezing of assets, or arrest.
Those engaged in commerce, international business, or trade with blacklisted countries or targeted persons may be subject to criminal penalties and administrative actions. Even people conducting personal transactions with family members, friends, nonprofit organizations, and charities are subject to the sanctions administered by OFAC. Willful violations of the sanctions can be prosecuted criminally by the Department of Justice. However, OFAC can hold a person civilly liable for any violation of the sanctions, including violations committed innocently or inadvertently. Accordingly, sanctions are commonly regarded as strict liability offenses.
How does one know if what they are doing is prohibited by sanctions? OFAC maintains a blacklist of targeted persons, entities, and organizations called the Specially Designated Nationals and Blocked Persons List (commonly referred to as the SDN List). Moreover, there are some sanctions that apply to entire nations, regardless if they appear on the SDN List. Due to ever-shifting government and political interests worldwide, this is a dynamic list that is constantly changing as new targets are added and more legal authorities are created by the Congress and President to expand sanctions. For information on SDN list removal, click that link, or contact an OFAC law firm to learn about the process of removing a name from the SDN List.
What’s more, is that the prohibitions contained in sanctions are construed very broadly. They often prohibit virtually all transactions and dealings, including those performed directly or indirectly. Also prohibited is the facilitation of a transaction performed on behalf of foreigners if that transaction would be prohibited if it had been performed by a U.S. person.
Price Benowitz’s OFAC Law Group successfully obtained an OFAC unblocking license for a client whose personal funds were blocked due to an intermediary financial institution’s false positive match to the Specially Designated Nationals List. The client’s name resembled a person on the SDN list and the funds were blocked due to a lack of timely communication with the bank and related compliance concerns. A specific license to unblock the funds authorizes the financial institution to return the funds to our client.
The OFAC Law Group was granted an OFAC specific license to obtain payment from an SDN client. The payment structure fell outside of the authorization of the general license to receive legal fee payments from an SDN person. Law firms must review the limitations of relevant authorizations to receive payment from SDN persons. SDN list removal is an extensive and complex process. Lawyers may need to obtain a specific license from OFAC prior to receiving payment from their client.
While the defendants did not admit any fault, we are happy to report that PAE agreed to pay the United States $5,000,000 to resolve the False Claims Act allegations contained in Mr. Palombo’s Complaint.
Unrest and political uprisings in foreign nations can quickly lead to sanctions against countries and regimes once deemed suitable for international business and trade. Foreign business affairs deemed legal one day could be grounds for legal action the very next day, almost without warning. For instance, as recently as March of 2014, President Barack Obama signed Executive Order 13660 placing sanctions on those involved in the Ukrainian revolt:
“The actions and policies of persons including persons who have asserted governmental authority in the Crimean region without the authorization of the Government of Ukraine that undermine democratic processes and institutions in Ukraine; threaten its peace, security, stability, sovereignty, and territorial integrity; and contribute to the misappropriation of its assets, constitute an unusual and extraordinary threat to the national security and foreign policy of the United States.”
These individuals and those who support them — and others like them in foreign nations around the world — are subject to asset freezes and denials of immigrant and nonimmigrant entrance into the United States. Furthermore, those subject to U.S. law are prohibited from making contributions of any kind to or from these persons. U.S. persons are also prohibited from transacting with such persons for goods and services and prohibited from taking any action which serves to evade these sanctions.
As with all other OFAC sanctions, the intent behind these statutes, executive orders, and regulations is to protect national security and maintain an effective foreign policy. Currently, OFAC sanctions are in place in one form or another in these foreign countries:
Financial dealings with and support of people within these nations may possibly violate U.S. sanctions. Involvement in activity which is questionable requires a prompt audit of compliance. Proper licensing and sanctions compliance by an OFAC lawyer may help to eliminate or limit the risk of OFAC enforcement. An OFAC law firm or attorney who is well versed in OFAC regulations and U.S. sanctions is best-suited to help with these endeavors.
Mr. Zarkesh did a fantastic job on my mother’s case. He obtained all the necessary licenses in a very speedy manner and very accurate. Prior to signing with him, my other attorney in CA did interview him and he highly recommended him based on his background. Mohsen is very detail oriented and he did a fantastic job in our case. Will go back to him in a heartbeat if need arises in the future.
Mohsen Zarkesh is a very determined, professional, and charismatic individual with a lot of experience in his field. I have full confidence in Mr. Zarkesh’s competency in helping people, particularly with OFAC sanction-related cases.
Mohsen has been nothing short of superb. Between his professionalism and determination, I am confident that he is always capable of exceeding expectations. His strong work ethic has shown phenomenal results. He is a strategic thinker and Farsi speaker that possesses valuable knowledge in the area of OFAC sanctions.
Mr. Zarkesh an incredibly effective attorney/ He has the patience and demeanor that an OFAC lawyer desperately needs to serve clients in this complex field of law. He is incredibly knowledgeable and responsive. It’s a huge plus that he knows Farsi as well!
I have known and worked with Mr. Zarkesh for a few years – he is one of the most knowledgable people when it comes to sanctions related issues. Mohsen’s fluency in Farsi and his knowledge on US-Iran trade relations sets him apart from others in the legal field. He is also an honest and hard working person that you can always trust.
Kaveh Miremadi was a colleague of mine for over three years while I was based in DC. He is the consummate professional and person of integrity you always want on your team. In all the complex situations I worked alongside him, he remained affable and ego-free throughout, a problem-solver with a keen attention to detail; he is a hard, smart, and good-hearted worker.
Mohsen and the OFAC Law Group at PriceBenowitz assisted us in obtaining a specific license from OFAC. He worked diligently with us to review our case and sanctions law. The license application was excellent and he got us exactly what we needed.
I have known Kaveh for over 28 years. He is a man of great integrity and someone I trust with my confidences, both personal and professional. Kaveh is an exceptional advocate; he is thoughtful, passionate, and dedicated. Kaveh is a creative problem solver and someone I can always count on to be in my corner.
Mr. Miremadi has the great expertise and in depth knowledge of the OFAC license requirements and their expectations. He is always responsive and provided great guidance. We highly recommend him for any OFAC related cases.
Mohsen Zarkesh is by far the best attorney to work with. He’s clear, attentive, and will do anything to help his clients.
Mr. Zarkesh’s knowledge on OFAC sanctions is extensive. He is willing to put in the hours to deliver high-quality work, and is very attentive to detail.
Mr. Zarkesh’s knowledge of the law and commitment to service is only surpassed by his attention to detail and desire to help others. He takes great pride in his work and the results show it.
It was a great experience to work with Mr. Krischik. He is very friendly and helpful. I highly recommend working with him.
It is very hard to find a lawyer like Mohsen Zarkesh who prioritizes you over himself
Brilliant attorney with a deep understanding of the law, first-rate counselor
With the myriad sanctions and regulations implemented and enforced by OFAC, it is important to ensure that you or your business does not violate any OFAC sanctions. Furthermore, in the unfortunate instance that you or your company has been served an OFAC Administrative Subpoena, it is vital that you provide all requested documentation and answer OFAC’s questions in a truthful and straightforward manner.
OFAC Attorney: OFAC stands for the Office of Foreign Assets Control. It is the federal agency in the U.S. Department of the Treasury responsible for the administration, implementation, and enforcement of economic sanctions programs. The agency works closely with other federal agencies and the intelligence community to develop sanctions programs that further U.S. foreign policy and national security objectives.
OFAC Attorney: OFAC is the federal agency responsible for the administration, implementation, and enforcement of economic sanctions. This means that OFAC drafts regulations, directives, and executive orders related to economic sanctions. OFAC also has an enforcement function where it carries out investigations into possible violations of sanction regulations. The agency also levies financial penalties and negotiates settlements with those it has determined have violated its rules. OFAC’s enforcement functions are primarily carried out by its Compliance Division and its Office of Enforcement. The Compliance Division focuses on financial institutions and banks, while the Office of Enforcement carries out enforcement actions against everyone else. OFAC also has a Licensing Division that evaluates applications submitted by people and businesses to determine whether otherwise prohibited transactions are consistent with the U.S. foreign policy and national security objectives.
SDN stands for specially designated national. The Office of Foreign Asset Control (OFAC) places individuals and entities on this list for national security, foreign policy, and sanctions policy objectives. If someone is placed on the list, it means they have been acting against the foreign policy and sanctions policy of the United States and have effectively been walled off from the international marketplace, particularly the U.S. financial system. As the U.S. economy is a major player in the international business market, placement on the SDN list makes it exceptionally difficult to engage in international transactions, particularly in U.S. dollars.
When OFAC adds an individual or entity to the SDN list, it provides information explaining the decision. Typically, one can find the reason for the placement on the SDN list by way of reports that the Department of Treasury puts out at the time of the designation. It is important to review these issues and address them in any requests for reconsideration or petition for removal.
To get a name removed from the SDN list, a person or entity must submit a petition for removal or a request for administrative consideration to OFAC. This administrative consideration must effectively state and argue that the person or entity has changed its behavior and will no longer engage in the prohibited activities. It is also necessary to show that they have divested from any potentially sanctionable activity after they incurred sanctions liability. Removal may also be possible if the individual or entity can provide evidence showing OFAC made an error in judgment in placing them on the SDN list.
After filing the request, OFAC reviews it and typically responds with numerous questions in an attempt to gain a more complete picture. This may happen several times. The entire process may take months or even years, depending on the complexity of the case and OFAC’s timeline.
An OFAC administrative subpoena is a legal request from the U.S. government to answer questions about activities or transactions that may have violated U.S. sanctions. The administrative subpoena requires an in-depth response to OFAC. At the time OFAC issues an administrative subpoena, no decision has yet been made by the government on any civil or criminal penalties involved in a potential violation of U.S. Sanctions.
OFAC Attorney: Yes. The SDN list is publicly available so that U.S. persons, banks, and financial institutions can identify and evaluate whether they are prohibited from transacting with a particular person. A typical entry on the SDN list publicly identifies the designated person’s name, aliases, addresses, citizenship, passport and other identification numbers, and the country of residence of that person. The list also idicates which specific sanctions program and legal authorities a particular person was designated under.
Interviewee: Yes, you can. OFAC has the discretion to issue licenses authorizing U.S. persons to engage in conduct that is otherwise prohibited. Although a person can technically apply to undertake any kind of transaction, some sanctions programs contain statements of licensing policy identifying particular activities that OFAC would be willing to authorize. For example, in the Iran sanctions context, there is a favorable licensing policy for the sale of civilian aircraft parts to Iran to improve aircraft safety. There are also favorable licensing policies for the export of food, medicine, and medical devices to some of the other sanctioned countries as well.
OFAC Attorney: An OFAC subpoena is a formal demand from OFAC for records, documents, and information. The issuance of an OFAC subpoena usually indicates that the person receiving the subpoena is under investigation by OFAC for potential violations of sanctions regulations. A person receiving the subpoena is generally required to comply with the subpoena within 30 days. If 30 days is not enough time, a person can request additional time to comply with the subpoena. People should always be aware that any materially false or misleading statements made to OFAC in response to a subpoena can form the basis of a separate criminal prosecution for false statements.
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