A cross-border payment leaves the sender’s account but never reaches the recipient. A correspondent bank refers to sanctions, requests additional documents or confirms that the funds are blocked. The immediate priority is to establish what happened and which legal process can address it. Arkady Bukh Law Firm helps clients evaluate blocked funds matters and prepare a coordinated response to U.S. sanctions issues.
The phrase “OFAC freeze” can describe several different situations. A temporary compliance review, a rejected payment and legally blocked property require different responses. A specific license application may be appropriate, but it should follow a clear diagnosis of the restriction.
Determine where the funds are held
OFAC generally does not hold blocked money. Financial institutions hold property blocked under OFAC-administered restrictions. Start by asking the bank’s sanctions compliance team whether the funds are actually blocked and whether it can identify the relevant sanctions program or legal basis.
The payment trail matters. A sending bank may have only partial information about an intermediary’s decision. A transaction reference, SWIFT message and written notice can help connect the records. Keep the original documents and create a chronology showing when the payment was initiated, when the issue arose and what each institution has said.
Avoid sending several inconsistent explanations through different representatives. A single, accurate account gives the bank and counsel a usable record.
Identify the available legal route
A general license is a public authorization for transactions that meet its conditions. A specific license authorizes a particular transaction for the applicant. A lawyer should first evaluate whether an exemption, general license or other applicable authorization addresses the proposed release. An authorization may contain conditions, reporting obligations or limits that matter to the bank.
When no existing authorization applies, a specific license application may be considered. The submission should explain the transaction, identify all material parties and describe exactly what OFAC is being asked to authorize. A request to return funds to the sender can involve different questions from a request to complete payment to the beneficiary.
An apparent error also needs legal analysis. Being an innocent participant does not, by itself, establish that a bank may release property subject to a blocking requirement.
Prepare the documents that explain the payment
A useful blocked funds review usually starts with:
- The payment amount, currency, date and transaction reference.
- The contract, invoice and commercial purpose of the transfer.
- The sender, recipient, intermediary banks and known beneficial owners.
- The blocking notice and subsequent bank correspondence.
- Shipping records, product descriptions or service records where relevant.
- Any prior OFAC filing, license or agency communication.
The objective is to make the commercial story verifiable. If the invoice uses a trading name while the bank record uses a legal entity name, explain the connection. If ownership changed, provide the dates and supporting records. Missing context can be as disruptive as a missing document.
Coordinate the application and the bank response
Our approach links the legal request to the operational result the client needs. We assess the sanctions issue, organize the evidence and define the requested authorization. If retained for an application, we prepare the submission and handle agreed follow-up work.
Bank coordination remains important after an agency decision. The institution may need to confirm that the authorization covers the property and proposed transfer. Counsel can help present the relevant documents consistently, while the bank retains its own legal and compliance responsibilities.
Questions about releasing blocked funds
Does an OFAC license guarantee that a bank will process my transfer
An OFAC authorization addresses the sanctions restrictions within its scope. A bank may still need to address other legal obligations, documentation requirements or its own business policies. The intended payment route should be reviewed alongside the license request.
Can the application be expedited
Counsel can assess whether documented circumstances support an urgency request. Approval, processing time and any expedited treatment remain government decisions. A concrete explanation of the urgency is more useful than an unsupported request for immediate action.
Request a blocked funds assessment
Email info@arkadybukhlawfirm.com with a brief description of the payment and the bank’s stated reason for holding it. Include any pending deadline. Arkady Bukh Law Firm can discuss a defined scope for investigating the restriction and evaluating available release options.
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