The right time to investigate a sanctions problem is before your business commits to a transaction. A supplier may clear a basic name screen while its ownership, payment route or intended end use creates a separate issue. Arkady Bukh Law Firm advises clients seeking a practical understanding of U.S. sanctions exposure and a documented basis for commercial decisions.
A useful consultation should answer a business question. Can this payment proceed? Which facts must be verified? Is an authorization required? What should the compliance team do if a screening alert appears? The answer depends on the transaction and the sanctions measures in effect when it takes place.
Start with the transaction and the U.S. connection
An assessment should identify the parties, products or services, countries involved and intended flow of funds. U.S. persons, U.S. financial institutions and property within U.S. jurisdiction can create relevant connections. Certain measures can also expose non-U.S. businesses to sanctions risks. The analysis must identify the actual authority rather than assume every international transaction follows the same rule.
Export controls deserve separate attention. A favorable OFAC analysis does not resolve every restriction on goods, technology or services. Where the facts raise another regulatory issue, the engagement should address the additional work or identify the counsel needed for it.
Look beyond a counterparty name search
Under OFAC’s 50 Percent Rule, an entity can be blocked through aggregate direct or indirect ownership by blocked persons even when its name does not appear on the SDN List. Control alone does not automatically satisfy that ownership rule, although other restrictions and designation criteria may matter.
For a business decision, an ownership chart is useful only if the supporting records are reliable. We assess how entities connect, which documents establish ownership and where information remains incomplete. Unexplained nominee arrangements or conflicting registers call for follow-up rather than a simple clearance email.
The result should state the assumptions on which the analysis depends. If the client later learns that a shareholder or intermediary was omitted, the advice may need to change.
Turn legal advice into workable controls
OFAC’s compliance framework identifies management commitment, risk assessment, internal controls, testing and auditing, and training as core components. The implementation should fit the business.
For an exporter, the immediate problem may be inconsistent end-user documentation. For a financial platform, it may be the handling of alerts across several teams. For an investor, it may be the ownership information obtained before closing. A policy becomes useful when it tells the responsible employee what to check, when to stop and who can approve the next step.
An engagement can address transaction review, escalation procedures, contractual representations and records supporting decisions. We can also evaluate how a proposed compliance change affects an existing concern. Copying a generic policy into a handbook rarely answers the specific question that caused the client to seek advice.
Understand what a sanctions legal opinion can establish
A written opinion explains the legal analysis within an agreed scope and on stated facts. It can help management evaluate a transaction and explain its position to a bank or partner. Its usefulness depends on the accuracy of the facts and the restrictions considered.
An opinion does not bind OFAC, require a bank to accept a customer or immunize a company from enforcement. For that reason, we distinguish confirmed facts from assumptions and identify material information the business must still obtain.
Questions about OFAC compliance advice
Should we obtain advice before signing the contract
Early review is often more useful because the business can still change lawful terms, obtain missing records or decide against proceeding. Once funds are blocked or goods have shipped, the available choices may be narrower.
Can one review cover our entire business
A transaction opinion and an organization-wide compliance review serve different purposes. We define the scope around the decisions you need to make, the operations involved and the information available. Material changes in ownership, counterparties or law can require an update.
Get advice on a specific sanctions decision
Contact info@arkadybukhlawfirm.com with a short description of the proposed transaction, relevant countries and any deadline. After a conflict check, Arkady Bukh Law Firm can discuss the documents required and a suitable scope of U.S. sanctions advice.
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