The sanctions imposed by the Office of Foreign Assets Control (OFAC) are a powerful tool of international law and financial oversight aimed at preventing illegal activities and threats to US security.
If your assets have been frozen as a result of OFAC sanctions, it’s crucial to understand how to proceed in order to unfreeze them. Handling the situation correctly can help avoid prolonged financial and legal repercussions. In this article, we will thoroughly examine the process of OFAC release of blocked funds, and find out if sanctions lawyers can help you.
What are OFAC sanctions?
The OFAC (Office of Foreign Assets Control) sanctions are a set of measures employed by the US Department of the Treasury to influence individuals and organisations that violate international norms or pose a threat to the national security of the US. These sanctions can include asset freezing, restrictions on financial transactions, and prohibitions on doing business with certain entities. The primary aim of OFAC is to ensure compliance with US foreign economic policy and to combat threats to international security.
Regulatory framework
The legal basis for the activities of OFAC is established in a number of US legal acts, such as the International Emergency Economic Powers Act (IEEPA) and the Patriot Act. The international legal aspects of sanction policy are governed by the UN Charter and UN Security Council resolutions, which make them obligatory for member states.
Why are the funds being blocked?
Assets can be frozen by OFAC for a variety of reasons. One reason is the involvement of an entity in illegal activities that contravene US law or international standards. Additionally, the freezing of assets may be related to connections with prohibited regimes or terrorist organisations, including the financing or support of such entities against which sanctions are in place. Furthermore, the freezing of funds can result from participation in activities associated with serious human rights violations. Finally, assets can be frozen if there is evidence of corruption or actions aimed at undermining the rule of law.
Steps to Unlock Blocked Funds
Step 1: Conducting a thorough assessment
Before submitting a request to unfreeze funds, it’s essential to conduct a thorough assessment of the situation. This includes:
- Determining the cause of the block: ascertain which sanctions or measures led to the blockage;
- Impact assessment: analysis of the consequences of blocking for business or personal finances.
- Gathering documentation: preparing all necessary documents and evidence to substantiate the legitimacy of the request.
Step 2: Preparing an unlock request
OFAC stands for the Office of Foreign Assets Control. It’s an agency of the United States Department of the Treasury that administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries, terrorists, international narcotics traffickers, and those engaged in activities related to the proliferation of weapons of mass destruction. Preparing a request to unlock the blocked funds is a critical step in the process. It’s important to consider the following aspects:
- Legal and political grounds for lifting sanctions: justify why the funds should be unfrozen. This may include changes in behaviour, provision of further evidence, or rectification of breaches.
- Common reasons for blocking: please specify how the reasons leading to the block were addressed, for example, by severing ties with prohibited regimes or correcting business practices.
Step 3: Submitting a Request to OFAC
After preparing the request, it must be submitted to OFAC. Key points include:
- The format and content of the request: the request must be prepared in accordance with OFAC requirements and include all necessary documents and justifications.
- Submission deadlines: adherence to the submission deadline is required to avoid any further delays.
Step 4: Responding to OFAC Enquiries
After submitting a request, OFAC may require further clarification or documents. It’s important to note:
- Timely response: to quickly and comprehensively respond to all OFAC requests.
- Providing additional information: ensure all requested documents and explanations are supplied to support your position.
Step 5: Obtaining an OFAC Licence
If OFAC approves your request, you will be issued a licence permitting the unblocking of funds. The process of obtaining a licence includes:
- Applying for a licence: request a licence that will enable you to carry out transactions with previously frozen funds.
- Ensure compliance with licence requirements: make certain that all the terms of the licence are adhered to in order to prevent further sanctions.
Legal services for compliance with OFAC sanctions
Legal experts, such as OFAC solicitors, play a key role in the process of unblocking funds. They can assist in the following areas:
- Developing sanction compliance strategies: Assisting in the creation of effective strategies and procedures for meeting requirements.
- Legal and compliance assessments: Conducting risk assessments and checks to avoid potential breaches.
- Representing client interests: Protecting interests in the event of investigations and negotiations with regulators.
Sanctions lawyer London provides a range of specialised services aimed at addressing complex issues related to sanctions legislation. Among our services are expert consultations that will help you navigate through the intricate legal aspects and adapt to the requirements of OFAC. We also develop bespoke compliance programmes that align with sanction measures and the specifics of your business. Legal support includes protecting our clients’ interests and assisting in resolving disputes related to sanctions.
The process of unblocking funds that have been frozen by OFAC is a complex legal challenge that requires a deep understanding of international and sanctions law. Seeking assistance from experienced solicitors can help minimise legal risks and increase the likelihood of successfully resolving the situation. The solicitors at “Sanctions Law Firm” in London are ready to offer their professional services, providing reliable legal support and protecting clients’ interests throughout the process.
If you have any questions related to the freezing of assets, do not delay in seeking legal assistance. Professional support is a key element for the successful resolution of sanction issues and minimising their negative impact on your business and financial stability.
