U.S. Sanctions and OFAC Attorney

Legal Representation for OFAC Licenses, Blocked Assets and Sanctions Matters

Arkady Bukh Law Firm advises individuals, business owners, executives, financial professionals and international companies on U.S. economic sanctions and Office of Foreign Assets Control matters.

A sanctions issue may arise when a bank blocks a payment, an exchange restricts an account, a business discovers an SDN connection, OFAC requests information or federal authorities investigate transactions involving a sanctioned person, country or economic sector.

The firm provides legal assistance involving:

OFAC specific license applications
Analysis of general licenses
Blocked bank accounts and payments
Applications involving the release of blocked property
SDN List and sanctions-list matters
Petitions for removal from an OFAC sanctions list
Sanctions compliance programs
Customer and counterparty screening
Ownership and OFAC 50 Percent Rule analysis
Internal investigations
Responses to OFAC administrative subpoenas
Federal sanctions investigations
International transactions involving U.S. persons or financial institutions
Russia-related sanctions
Cryptocurrency and digital-asset sanctions issues
Representation of foreign individuals and companies

Sanctions questions should be analyzed before funds are transferred, documents are submitted or explanations are provided to a financial institution or government agency.

The correct response depends on the applicable sanctions program, the parties involved, ownership structure, transaction route, use of the U.S. financial system and reason an asset or payment was restricted.

Select the Appropriate Sanctions Service

OFAC Sanctions Advice

A sanctions review may be needed to determine whether a proposed or completed transaction is prohibited, authorized or outside the relevant restrictions.

The analysis may include:

The sanctions program involved
Whether a person appears on the SDN List or another OFAC list
Ownership by blocked persons
The role of a U.S. citizen, permanent resident or company
Use of U.S. banks or payment services
The location and nationality of the parties
The goods, services or property involved
Sectoral restrictions
General licenses and exemptions
Reporting and recordkeeping requirements

For a focused overview of OFAC restrictions and sanctions-list issues, visit:

OFAC Sanctions Attorney

OFAC License Applications

A general license may authorize a category of transactions without requiring an individual application. A specific license is written authorization issued by OFAC for a particular person, entity or transaction.

A specific license may be considered when:

A proposed transaction is otherwise prohibited
Funds are blocked at a financial institution
A person needs to receive or make a payment
Property must be transferred or administered
Legal or professional services involve a blocked person
A business needs to wind down restricted activity
A transaction does not fully satisfy a general license
The applicable sanctions program provides a licensing policy

For assistance with a specific license application, visit:

OFAC Licenses Attorney

Blocked Assets and Unblocking Applications

A blocked account or payment is generally frozen rather than transferred to the U.S. government. Ownership may remain with the original owner, but the property cannot ordinarily be transferred, withdrawn or otherwise dealt in without authorization.

Legal assistance may involve:

Identifying why the property was blocked
Reviewing the bank’s blocking notice
Determining the sanctions program and legal authority
Examining whether the owner is an SDN
Analyzing indirect ownership
Addressing a false-positive name match
Reviewing whether a general license applies
Preparing a specific license application
Communicating with the financial institution
Presenting source-of-funds and ownership evidence
Addressing reporting requirements
Asserting the rights of a third-party owner

For matters involving frozen funds and other property, visit:

OFAC Unblocking Applications Attorney

Who This Sanctions Attorney Represents

Arkady Bukh Law Firm advises clients whose activities may be affected by U.S. economic sanctions, including:

S. citizens and permanent residents
Foreign nationals
Russian individuals and businesses
International companies
Importers and exporters
Banks and financial professionals
Payment processors
Cryptocurrency exchanges and wallet providers
Investors
Corporate executives
Technology companies
Shipping and logistics businesses
Professional-service providers
Companies conducting cross-border transactions
Owners of blocked bank accounts
Individuals or entities listed by OFAC
Companies owned by or connected with sanctioned persons
Clients responding to federal sanctions investigations

The nationality of a person does not by itself establish that the person is sanctioned.

A Russian citizen, foreign company or business connected with a high-risk jurisdiction may be permitted to engage in many lawful transactions. The analysis should focus on the applicable program, sanctions-list status, ownership, counterparties, services and U.S. nexus.

OFAC Licenses

An OFAC license authorizes conduct that would otherwise be prohibited under an OFAC-administered sanctions program.

There are two principal types of authorization.

General Licenses

A general license authorizes a defined category of transactions for qualifying persons without requiring each person to obtain individual written approval.

General licenses may address matters such as:

Legal services
Telecommunications
Humanitarian activity
Agricultural or medical transactions
Personal remittances
Wind-down activity
Diplomatic functions
Transactions involving particular organizations
Limited dealings with certain blocked property

The precise language matters. A transaction is authorized only when all conditions of the general license are satisfied.

Before relying on a general license, the parties should determine:

Whether the license applies to the correct sanctions program
Whether every party is covered
Whether the transaction falls within the permitted category
Whether the authorization has an expiration date
Whether reporting is required
Whether recordkeeping requirements apply
Whether another prohibition remains in effect
Whether an entity is blocked under the 50 Percent Rule

A general license should not be treated as a broad exemption from all sanctions requirements.

Specific Licenses

A specific license is written authorization issued by OFAC in response to an application from a particular person or entity.

An application may need to describe:

The applicant
Every party to the proposed transaction
The relevant sanctions program
The blocked person or property involved
The proposed activity
The purpose of the transaction
The source and destination of funds
The financial institutions involved
The legal basis for authorization
Supporting contracts and records
Any urgency or humanitarian considerations
Requested conditions or time periods

OFAC evaluates specific license applications individually. Submitting an application does not authorize the transaction while the request is pending.

The transaction should not proceed unless it is independently authorized or OFAC issues the requested license.

Blocked Property

Blocking generally means freezing property or an interest in property.

Property may include more than money in a bank account. Depending on the regulations, it can include:

Bank deposits
Securities
Real estate
Contract rights
Debts
Letters of credit
Digital assets
Cryptocurrency
Business interests
Goods
Services owed
Payments in transit
Other tangible or intangible property

When property within the United States or within the possession or control of a U.S. person is required to be blocked, it generally cannot be:

Transferred
Withdrawn
Paid
Exported
Sold
Assigned
Released
Set off against another obligation
Otherwise dealt in without authorization

Blocking and rejecting a transaction are not the same.

When a transaction is blocked, the property is frozen. When a transaction is rejected, the transaction is not processed, but the funds may be returned or handled according to the applicable rules.

The correct response depends on the sanctions program and the reason the financial institution took action.

Why a Bank or Financial Institution May Block Funds

A bank may block or restrict funds after identifying:

An exact SDN match
A possible name match
A party owned by blocked persons
A sanctioned bank
A restricted jurisdiction
A prohibited payment route
A sanctioned vessel or company
Information in the payment message
A transaction involving blocked property
A law-enforcement request
A sanctions-compliance concern requiring further review

A blocked payment does not necessarily prove that the customer violated sanctions.

The problem may involve:

Mistaken identity
Similar names
Incomplete payment information
An outdated ownership record
A bank’s risk policy
A correspondent bank’s decision
A transaction requiring further documentation
An entity that is not listed but may be blocked through ownership
A transaction that may qualify under a general license

Legal review should begin with the actual blocking notice and the information available to the financial institution.

OFAC Unblocking Strategy

An unblocking matter may require more than a short letter stating that the funds are lawful.

The response may include:

A complete transaction chronology
Identification documents
Corporate ownership records
Contracts and invoices
Source-of-funds records
Bank statements
Evidence concerning the ultimate beneficiary
An explanation of the payment purpose
Proof that the transaction satisfies a general license
Evidence of a false-positive match
A specific license application
A request to the bank for reconsideration
Communication with OFAC
A third-party ownership claim

The correct procedure depends on whether the property was formally blocked under OFAC regulations, restricted under a bank’s internal policy or seized under a separate judicial process.

An OFAC license request should not be confused with a motion challenging a federal seizure warrant or a civil forfeiture complaint.

SDN List Matters

The Specially Designated Nationals and Blocked Persons List identifies individuals, entities and property designated under different sanctions programs.

The effect of an SDN designation may include:

Blocking property within U.S. jurisdiction
Prohibiting transactions by U.S. persons
Restrictions on receiving goods or services
Restrictions on access to the U.S. financial system
Difficulties with foreign banks and counterparties
Contract termination
Exchange-account restrictions
Business and reputational consequences

A person may appear on the list under several program tags or legal authorities.

The legal analysis should identify:

The exact listed name
Unique identification information
Aliases
Program tags
The date of designation
The legal authorities cited
Related entities and property
Ownership interests
Whether separate State Department sanctions apply
Whether an administrative reconsideration request is appropriate

Petitions for Removal From an OFAC Sanctions List

An individual, entity or listed property may request administrative reconsideration of an OFAC listing.

A delisting petition may argue, depending on the facts, that:

The designation resulted from mistaken identity
The factual basis was inaccurate
The circumstances have materially changed
The conduct that led to the designation has ended
The person no longer meets the applicable criteria
Ownership or control has changed
Corrective measures have been implemented
The person has severed relevant relationships
Other grounds support removal under the applicable authority

A petition should address every legal authority under which the person or property is listed.

Supporting materials may include:

Identity records
Corporate documents
Ownership charts
Employment history
Financial records
Sources of income
Evidence of changed circumstances
Compliance policies
Information concerning relationships with other sanctioned persons
Explanations addressing the designation record

OFAC may request additional information during its review.

Submitting a petition does not automatically suspend sanctions or release blocked property. The restrictions generally remain in effect unless OFAC authorizes otherwise or removes the listing.

The OFAC 50 Percent Rule

An entity does not need to appear by name on the SDN List to be treated as blocked.

Under OFAC’s 50 Percent Rule, an entity is generally blocked when one or more blocked persons directly or indirectly own 50 percent or more of it in the aggregate.

For example, an entity may be blocked when:

One SDN owns 50 percent
Two SDNs each own 25 percent
A blocked parent company indirectly owns at least 50 percent
Ownership is divided through several blocked intermediate entities

The rule concerns ownership, not control alone.

An entity controlled by an SDN but owned less than 50 percent by blocked persons is not automatically blocked solely under the 50 Percent Rule. Nevertheless, transactions involving the blocked individual may still be prohibited, and OFAC may separately designate the entity.

Ownership analysis may require reviewing:

Direct shareholders
Indirect ownership
Holding companies
Trusts
Beneficial owners
Nominees
Aggregated interests of several SDNs
Changes in ownership
Transfers after designation
The authenticity of an alleged divestment

A sanctions-list search limited to the company name is therefore insufficient in many transactions.

Sanctions Screening and Due Diligence

Sanctions screening should not consist only of entering a name into a search tool.

A risk-based review may include:

Full legal names
Alternate spellings and transliterations
Dates of birth
Nationality
Addresses
Passport or registration numbers
Corporate ownership
Beneficial owners
Directors and signatories
Banks
Vessels
Wallet addresses
Transaction routes
Countries involved
Goods and services
Sanctions program tags

Potential matches should be investigated rather than automatically treated as confirmed SDN matches.

The review may need to distinguish among:

A true match
A false positive
An entity blocked under the 50 Percent Rule
A non-blocked entity controlled by an SDN
A party subject to narrower non-blocking restrictions
A transaction permitted by a general license
A prohibited transaction requiring a specific license

The scope of due diligence should reflect the company’s customers, products, geographic exposure and transaction risk.

Sanctions Compliance Programs

OFAC encourages organizations subject to U.S. jurisdiction, as well as foreign companies conducting business in or with the United States or U.S. persons, to use a risk-based sanctions compliance program.

A compliance program commonly includes five core components:

Management commitment
Risk assessment
Internal controls
Testing and auditing
Training

Management Commitment

Senior management should provide the authority, personnel and resources needed for compliance.

Responsibility should not be assigned to an employee who lacks access to transaction information or the authority to stop a prohibited payment.

Risk Assessment

A company should evaluate sanctions exposure based on:

Customers
Counterparties
Products
Services
Payment routes
Financial institutions
Geographic markets
Ownership structures
Shipping routes
Digital assets
Agents and intermediaries

The assessment should be updated when the business enters a new market, launches a product or changes its payment and ownership structure.

Internal Controls

Controls may include:

Customer identification
Sanctions-list screening
Beneficial-ownership review
Payment screening
Escalation procedures
Transaction holds
Licensing review
Reporting
Record retention
Approval requirements
Contract provisions
Procedures for blocked and rejected transactions

The controls should explain who makes a decision and how the company records the basis for it.

Testing and Auditing

Testing can identify:

Incomplete customer information
Screening-system gaps
Incorrect list settings
Unreviewed alerts
Failure to aggregate ownership
Transactions processed after an alert
Missing reports
Problems with agents or foreign affiliates

An audit should test how the procedures work in practice rather than only confirm that written policies exist.

Training

Training should reflect the employee’s responsibilities.

Payment personnel, sales teams, compliance staff, executives and technical employees may face different sanctions risks.

Russia-Related Sanctions

U.S. sanctions involving Russia include several programs, executive orders, directives, general licenses and restrictions applying to particular persons, entities, sectors, services and transactions.

A Russia-related legal review may involve:

An individual or company appearing on the SDN List
Ownership by one or more blocked Russian persons
Transactions involving Russian banks
Blocked securities or debt
Energy-sector restrictions
Restrictions on particular professional services
Imports or exports
New investment restrictions
Sovereign debt
Shipping and maritime activity
Payment processing through U.S. banks
Cryptocurrency transfers
Personal remittances
Legal fees
Wind-down activity
General licenses
Frozen assets

Being Russian, operating in Russia or dealing with a Russian counterparty does not automatically make every transaction prohibited.

The analysis must identify the parties, ownership, goods, services, payment route, date and exact legal authority in effect at the time.

Sanctions rules can change. A transaction that was authorized during one period may become restricted later, while a new or amended general license may authorize limited activity.

Assistance for Foreign Clients

Foreign individuals and companies may be affected by U.S. sanctions even when they are located outside the United States.

Potential U.S. connections include:

A payment in U.S. dollars
A U.S. correspondent bank
A U.S. citizen or permanent resident employee
A U.S.-incorporated company
A foreign branch of a U.S. company
S.-origin goods or technology
A U.S. online platform
Servers or infrastructure in the United States
A U.S. cryptocurrency exchange
Transactions involving blocked property
Conduct intended to cause a U.S. person to violate sanctions

Foreign persons may face legal risk when they cause, assist or conspire to cause a U.S. person to process a prohibited transaction or engage in conduct intended to evade sanctions.

A foreign client may need advice concerning:

S. jurisdiction
Payment routing
Corporate ownership
Contract performance
Asset blocking
Travel risk
Government inquiries
Parallel foreign sanctions
Criminal investigations
Extradition

The existence of a U.S. connection should be examined before assuming that a transaction occurring abroad is beyond OFAC jurisdiction.

Cryptocurrency and Digital Assets

OFAC sanctions can apply to transactions involving cryptocurrency and other digital assets.

A matter may concern:

A wallet address associated with an SDN
A transaction involving a sanctioned exchange
A restricted cryptocurrency account
Blockchain exposure to a blocked address
A ransomware or cybercrime investigation
Source-of-funds questions
A foreign exchange or payment platform
Cryptocurrency held as blocked property
A transaction involving a sanctioned jurisdiction

Blockchain screening should not be treated as conclusive proof that the customer controlled or knowingly dealt with a blocked wallet.

A review may require:

Wallet attribution
Exchange records
Private-key control
Transaction chronology
Direct and indirect exposure
Ownership of deposited assets
Commercial purpose
Automated transactions
Multisignature arrangements
Custodial accounts

For a broader discussion of cryptocurrency regulation and investigations, visit the Cryptocurrency and Crypto Law Attorney page.

Internal Sanctions Investigations

A company may discover a potential sanctions violation through:

A screening alert
A blocked payment
A bank inquiry
An employee report
An internal audit
A government request
A customer complaint
Review of historical transactions
Acquisition due diligence
Discovery of an undisclosed beneficial owner

An internal investigation may examine:

Which legal entity processed the transaction
The parties involved
What information employees possessed
Whether an SDN or blocked entity was involved
Whether a general license applied
Whether a transaction should have been blocked or rejected
Whether reporting was completed
Whether management approved the activity
Whether records were altered
Whether similar transactions occurred
Whether an outside intermediary concealed information
Whether remedial measures are required

The investigation should be designed carefully because reports, employee interviews and communications may later be requested by regulators or prosecutors.

Voluntary Self-Disclosure

After identifying a potential violation, a company may need to consider whether to submit a voluntary self-disclosure.

The decision should follow a factual and legal review.

Relevant questions may include:

Has OFAC or another agency already learned of the conduct?
Was the disclosure made before an imminent discovery?
Is the submission complete?
Are related violations still occurring?
Has the company preserved records?
Were responsible employees identified?
Have corrective measures been implemented?
Are other agencies involved?
Could the matter include criminal conduct?
Are foreign disclosure obligations implicated?

A rushed or incomplete disclosure can create additional issues. The company should understand the transaction history and applicable sanctions provisions before describing the conduct.

OFAC Administrative Subpoenas and Investigations

OFAC may request information and records in connection with an apparent sanctions violation.

A request may cover:

Customer files
Payment records
Bank communications
Screening results
Ownership records
Emails and messages
Internal policies
Compliance alerts
License applications
Blocked-property reports
Rejected transactions
Contracts and invoices
Shipping documents
Digital-asset records
Communications with foreign affiliates

Before responding, counsel may need to determine:

The precise scope of the request
The relevant time period
Which legal entities are covered
Where responsive information is stored
Whether information is privileged
Whether foreign law restricts disclosure
Whether a deadline extension is needed
Whether individuals require separate counsel
Whether the matter may be referred for criminal investigation

Responses should be accurate, organized and consistent with the original records.

Federal Criminal Sanctions Investigations

Potentially willful sanctions violations may lead to investigation by the Department of Justice and other federal agencies.

A criminal investigation may concern allegations that a person:

Knowingly conducted prohibited transactions
Caused a U.S. bank to process restricted payments
Used shell companies or nominees
Concealed the identity of a sanctioned party
Altered payment messages
Routed transactions through third countries
Exported restricted goods or technology
Provided prohibited services
Transferred assets for an SDN
Made false statements to financial institutions or investigators
Laundered funds connected with sanctions evasion
Joined a conspiracy to evade restrictions

A federal investigation may involve:

Target letters
Grand jury subpoenas
Search warrants
Interviews
Seizure of devices
Bank records
International evidence requests
Arrest warrants
Asset forfeiture
Extradition

The fact that OFAC regulations may permit civil enforcement without proof of knowledge does not eliminate the separate mental-state requirements of criminal statutes.

The prosecution must prove the elements of the actual criminal charges.

Pre-Indictment Sanctions Defense

Legal representation may begin before federal criminal charges are filed.

Counsel may:

Contact prosecutors
Clarify the client’s status
Identify suspected transactions
Review the relevant sanctions program
Analyze licenses and exemptions
Respond to subpoenas
Prepare the client for an interview
Conduct an independent investigation
Review payment messages and ownership records
Preserve favorable evidence
Retain financial or technical experts
Present factual and legal information
Address blocked or seized assets
Coordinate with foreign counsel
Prepare for voluntary surrender or extradition

Early representation cannot guarantee that charges will be avoided. It may help prevent inconsistent statements and preserve documents relevant to authorization, ownership, knowledge and intent.

Possible Sanctions Defense Issues

The appropriate defense depends on the sanctions program and allegations.

The Transaction Was Authorized

The conduct may have been permitted by:

A general license
A specific license
A statutory exemption
A regulatory exemption
A wind-down authorization
A humanitarian authorization
Another applicable provision

Every condition of the authorization must be reviewed.

No Blocked Person or Property Was Involved

The customer or counterparty may have been incorrectly matched with an SDN.

The entity may not have been 50 percent or more owned by blocked persons.

Lack of Knowledge or Willfulness

In a criminal case, the government may be unable to prove the mental state required by the charged statute.

The client may have relied on incomplete or false information provided by another party.

The Client Did Not Cause the U.S. Transaction

A foreign person may dispute whether their conduct caused a U.S. person or financial institution to process the transaction.

No Agreement to Evade Sanctions

Communication with a sanctioned person or participation in a lawful transaction does not automatically prove a conspiracy.

Legitimate Corporate Structure

The government may characterize an ordinary holding company, agent or intermediary as a device for concealment.

The purpose, ownership and documentation of the structure should be examined.

Inaccurate Ownership Analysis

Investigators or a financial institution may have incorrectly applied the OFAC 50 Percent Rule.

False or Misleading Bank Information Was Not Provided

A payment message may have been abbreviated or generated automatically rather than altered to conceal a sanctioned party.

Unreliable Evidence

The government may rely on cooperating witnesses, incomplete records or translations that do not accurately describe the client’s conduct.

Incorrect Transaction or Penalty Calculation

The government may have included:

Authorized transactions
Duplicate payments
Transactions outside the relevant period
Activity by another legal entity
Amounts unrelated to the apparent violation
Property not controlled by the client

Improper Search or Seizure

Evidence may be challenged when obtained through an unsupported or overly broad warrant or a search exceeding the authorized scope.

Civil and Criminal Consequences

Sanctions matters may result in different types of proceedings.

Possible consequences include:

A cautionary or no-action letter
A finding of violation
A civil monetary penalty
A settlement agreement
Additional compliance obligations
Loss of banking relationships
Blocked or rejected transactions
Designation on an OFAC sanctions list
Criminal charges
Imprisonment after conviction
Criminal fines
Asset forfeiture
Export-control restrictions
Contract termination
Professional and reputational harm

Civil and criminal proceedings have different standards.

OFAC may impose civil penalties under a strict-liability framework in appropriate cases, meaning that a person subject to U.S. jurisdiction may face civil liability without proof that the person knew the transaction was prohibited.

Criminal prosecution generally requires proof of the elements and mental state specified by the charged statute.

Sanctions and Export Controls

OFAC sanctions and export controls may apply to the same transaction, but they are not identical.

OFAC generally administers economic and trade sanctions. Export-control matters may also involve:

The Department of Commerce Bureau of Industry and Security
The Export Administration Regulations
The Department of State
The International Traffic in Arms Regulations
Restricted-party lists administered by other agencies
Controls based on the classification and destination of goods or technology

An OFAC license does not automatically provide every authorization required under export-control laws.

A transaction involving software, technology, equipment or technical services may require a separate export-control analysis.

How Sanctions Affect Contracts and Transactions

Sanctions may affect:

Payment obligations
Delivery of goods
Performance of services
Loan agreements
Insurance
Shipping
Joint ventures
Mergers and acquisitions
Employment
Professional services
Technology access
Intellectual property
Digital assets

A contract may contain sanctions representations, warranties and termination rights.

The parties should determine:

Which sanctions laws the clause covers
Whether compliance is measured at signing or throughout performance
What happens if a party becomes designated
Whether payment must be blocked
Whether performance is excused
Whether a license should be requested
Whether information must be disclosed
Whether a party may terminate based only on internal risk policy

A broad sanctions clause may allow a bank or business to refuse activity that is legally permissible but outside its commercial risk tolerance.

What Are U.S. Economic Sanctions?

U.S. economic sanctions are legal restrictions administered principally by OFAC based on national-security and foreign-policy authorities.

Sanctions programs vary substantially.

They may include:

Blocking the property of designated persons
Restrictions involving a country or territory
Prohibitions involving particular sectors
Restrictions on debt or equity
Trade restrictions
Limits on services
Investment prohibitions
Restrictions involving vessels or aircraft
Secondary sanctions or designation risk
Reporting and recordkeeping requirements

There is no single universal list of sanctioned countries.

Some programs are broad, while others target particular individuals, companies, industries, transactions or forms of financial activity.

The applicable regulations, executive orders, statutes, directives, general licenses and OFAC guidance should be reviewed together.

Bukh Law Firm Sanctions and OFAC Services

OFAC License Applications

Preparation of specific license requests and analysis of available general licenses.

Blocked-Asset and Unblocking Matters

Representation involving frozen bank accounts, payments, securities, digital assets and other property.

SDN and Delisting Matters

Review of designation authorities and preparation of administrative reconsideration petitions.

Russian Sanctions Advice

Advice to Russian individuals, international companies and counterparties concerning U.S. sanctions restrictions and lawful transactions.

Sanctions Compliance Programs

Development and review of risk assessments, internal controls, testing and training.

Sanctions Screening and Ownership Analysis

Review of potential list matches, beneficial ownership and application of the 50 Percent Rule.

Internal Investigations

Investigation of blocked payments, undisclosed ownership, screening failures and historical transactions.

OFAC Subpoena and Enforcement Response

Representation during administrative requests, investigations and civil enforcement proceedings.

Federal Criminal Defense

Representation in investigations involving IEEPA, sanctions evasion, conspiracy, money laundering and false statements.

Cryptocurrency Sanctions Matters

Review of wallet exposure, exchange restrictions, blocked digital assets and sanctions-related blockchain evidence.

International Transactions

Advice concerning foreign clients, U.S. banks, U.S. persons, cross-border payments and parallel sanctions regimes.

Contract Review

Drafting and analysis of sanctions representations, warranties, covenants and termination provisions.

What to Do After an OFAC Issue Arises

Do not attempt to move, withdraw or disguise blocked property.

Do not alter payment instructions or remove a party’s name to avoid screening.

Preserve:

Bank statements
Payment messages
Contracts
Invoices
Corporate ownership documents
Communications with banks
Customer-identification records
Screening results
General and specific licenses
Shipping documents
Emails and messages
Digital-asset records
Internal compliance decisions
Reports submitted to OFAC

Determine:

Who restricted the transaction
Whether property was blocked or a transaction was rejected
Which sanctions program applies
Whether an exact or potential SDN match exists
Whether the 50 Percent Rule is involved
Whether a general license applies
Whether a specific license is needed
Whether reporting deadlines apply
Whether OFAC or another federal agency has requested information
Whether the issue may involve criminal allegations

Arkady Bukh Law Firm represents individuals and businesses in OFAC licensing, blocked-asset matters, compliance reviews, sanctions investigations and related federal proceedings.

U.S. Sanctions and OFAC FAQ

Is Arkady Bukh a U.S. sanctions attorney?

Yes. Arkady Bukh Law Firm advises individuals and businesses on OFAC restrictions, licenses, blocked property, compliance and sanctions investigations.

Does the firm represent foreign and Russian clients?

Yes. The firm represents foreign individuals and businesses, including Russian clients, when U.S. sanctions affect accounts, transactions, property, business activity or federal investigations.

Is every Russian person sanctioned?

No. Nationality alone does not establish that a person is sanctioned. The analysis depends on the applicable program, list status, ownership, transaction and U.S. connection.

What is an OFAC specific license?

A specific license is written authorization issued to a particular person or entity for a transaction that would otherwise be prohibited.

What is an OFAC general license?

A general license authorizes a defined category of transactions without requiring each qualifying person to submit an individual application. All conditions must be satisfied.

What does it mean when funds are blocked?

The funds are generally frozen and cannot be transferred or withdrawn without authorization. Blocking does not necessarily transfer ownership to the government.

What is the difference between blocked and rejected funds?

Blocked property is frozen. A rejected transaction is not processed because of a sanctions prohibition that does not require the property to be blocked. The applicable program determines the correct treatment.

Can a bank block an account because of a similar name?

A potential false-positive match can result in a temporary restriction or review. Identity documents and other records may be needed to distinguish the customer from a listed person.

Can OFAC release blocked funds?

OFAC may authorize dealings in blocked property through a specific license or other applicable authorization. The correct procedure depends on why the funds were blocked.

What is the SDN List?

The SDN List identifies persons and property subject to blocking sanctions under different legal authorities and sanctions programs.

Can a person request removal from the SDN List?

Yes. A listed person or authorized representative may submit a petition for administrative reconsideration. The submission should address every authority under which the person is listed.

What is OFAC’s 50 Percent Rule?

An entity is generally considered blocked when one or more blocked persons directly or indirectly own 50 percent or more of it in the aggregate, even when the entity is not separately named on the SDN List.

Does control by an SDN automatically block a company?

Control alone, without aggregate ownership of at least 50 percent, does not automatically block the company under the 50 Percent Rule. Transactions involving the blocked person may still be prohibited.

Do foreign companies have to comply with U.S. sanctions?

They may be affected when transactions involve U.S. persons, banks, goods, services or blocked property. Foreign persons also may not cause U.S. persons to violate sanctions or participate in sanctions evasion.

Can an OFAC matter become a criminal case?

Yes. Potentially willful violations, evasion, false statements, money laundering and conspiracy may lead to a federal criminal investigation.

Does a compliance failure automatically prove a crime?

No. Administrative, civil and criminal proceedings have different requirements. Criminal prosecutors must prove the elements and mental state required by the charged statutes.

When should a business review its sanctions compliance program?

A review may be appropriate before entering a new market, accepting high-risk customers, changing payment routes, acquiring another company or responding to a blocked transaction or government inquiry.

Does an OFAC license cover export-control requirements?

Not necessarily. A transaction may also require authorization under regulations administered by the Departments of Commerce or State.

What should I do after receiving an OFAC subpoena?

Preserve relevant documents, determine the scope and deadline, identify the entities and employees involved and review possible civil or criminal exposure before submitting a response.