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U.S. Office of Foreign Assets Control (OFAC)

Call 305-456-3830 or email info@diaztradelaw.com.

Getting Off the SDN List: A Practical Guide to OFAC’s Administrative Reconsideration Process 

Landing on the Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals and Blocked Persons List (SDN List) is one of the most consequential things that can happen to a company or individual doing business in or with the United States. Assets are frozen, U.S. persons are barred from dealing with you, and banking relationships evaporate almost overnight.  

The good news is that SDN designations are not necessarily permanent. OFAC maintains a formal process – administrative reconsideration – for petitioning to have a person, entity, or piece of property removed from an OFAC-administered sanctions list. This article walks through how that process works, what to expect at each stage, and where clients most often stumble. 

Step One: Confirm You’re Using the Right Process 

Before filing anything, it’s worth pausing to confirm which removal process actually applies to your situation, because OFAC’s administrative reconsideration process is not a one-size-fits-all remedy. 

  • You are the designated party. If you, your organization, or your property appear on an OFAC-administered list because OFAC itself made the designation, the administrative reconsideration process under 31 C.F.R. § 501.807 is the correct path, and it runs through OFAC’s Reconsideration Portal. 
  • The designation was made by the State Department. Some names appear on OFAC-administered lists because the Department of State designated them (for example, under certain terrorism-related authorities). Removal in those cases goes through […]
By |2026-08-27T16:16:18-04:00August 27, 2026|Export, U.S. Office of Foreign Assets Control (OFAC)|0 Comments
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New OFAC Advisory: Signs of Sham Transactions and Sanctions Evasion

On March 31, 2026, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) released an important advisory addressing the growing use of sham transactions to evade U.S. sanctions. The guidance highlights how sanctioned individuals and entities often attempt to disguise their continuing interest in property through opaque legal structures, proxies, and other intermediaries. OFAC’s message is clear: transactions that merely appear to transfer ownership but do not genuinely extinguish a blocked person’s interest remain prohibited. 

What OFAC Defines as a “Sham Transaction” 

Sham transactions occur when blocked persons “give up their property on paper only,” while continuing to benefit from or control the asset. These arrangements often involve: 

  • Proxies, straw owners, or front companies acting on behalf of sanctioned individuals. 
  • Opaque legal structures, including multi‑layered LLCs, partnerships, or trusts. 
  • Transfers to family members or close associates who may serve as facilitators. 
  • Commercially unreasonable transfers, such as those lacking adequate consideration. 
  • Continued use or control of the asset by the blocked person after the purported transfer. 

Pro Tip: Look beyond legal formalities and identify the economic realities of the transaction. 

Red Flags Identified by OFAC 

The advisory outlines several indicators that a transaction may be a sham designed to evade sanctions. These include: 

By |2026-04-07T16:53:01-04:00April 3, 2026|Enforcement, International Law, International Trade, Investigation, U.S. Office of Foreign Assets Control (OFAC)|0 Comments
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FinCEN Issues NPRM to Fully Implement Whistleblower Program

Authors:

Jennifer Diaz, President, Diaz Trade Law

Amber Pirson, Attorney, Diaz Trade Law

FinCEN’s March 30, 2026, Notice of Proposed Rulemaking (NPRM) marks a major step toward fully operationalizing the agency’s whistleblower program, designed to incentivize reporting of Bank Secrecy Act (BSA), sanctions, IEEPA, and other illicit finance violations. The proposal outlines how whistleblowers can securely submit information, how awards will be determined, and what protections will be available.  

This development reflects the Treasury Department’s broader strategy to strengthen financial system integrity and encourage actionable tips that support enforcement efforts. For financial institutions, compliance professionals, and potential whistleblowers, the NPRM provides long‑awaited clarity on program structure and expectations. 

Overview of the Proposed Rule 

FinCEN’s NPRM proposes a comprehensive framework for administering whistleblower submissions and awards. Key elements include: 

  • Secure submission procedures for individuals reporting suspected violations of the BSA, OFAC sanctions, and related laws. 
  • Eligibility criteria for whistleblower awards, including documentation requirements and timelines. 
  • Award ranges of 10–30% of monetary penalties collected when a whistleblower’s information leads to a successful enforcement action. 
  • Robust protections for individuals who provide information, including confidentiality and anti‑retaliation safeguards. 

These provisions aim to encourage early, detailed reporting while ensuring whistleblowers are shielded from adverse consequences. 

Why FinCEN Is Prioritizing Whistleblower Incentives 

The NPRM aligns with Treasury’s broader […]

By |2026-04-03T10:52:12-04:00April 3, 2026|Enforcement, International Law, Trade Policy, U.S. Department of Justice (DOJ), U.S. Office of Foreign Assets Control (OFAC)|0 Comments
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ICYMI: Tri-Seal Advisory: Sanctions and Export Controls Relief for Syria

On November 7, 2025, the Office of Foreign Assets Control (OFAC), alongside the U.S. Department of State and the U.S. Department of Commerce, issued a Tri-Seal Advisory: Sanctions and Export Controls Relief for Syria. 

The Advisory follows President Trump’s Executive Order on June 30, 2025, formally removing U.S. sanctions on Syria and directing agencies to take additional measures to encourage U.S. private sector and foreign partner reengagement in Syria.

New Opportunities & Remaining Restrictions

The Advisory outlines what business with Syria is now permissible as well as what restrictions remain.

Permissible Business:

  • The United States no longer imposes comprehensive sanctions on Syria. 
  • The Caesar Act is suspended, except for sanctionable transactions with Russia and Iran.
  • The transfer of most basic civilian use U.S.-origin goods, as well as software and technology, to or within Syria is permitted without a license. 

Remaining Restrictions:

  • Sanctions remain on “the worst of the worst:” Bashar al-Assad and his associates, human rights abusers, drug traffickers, and other destabilizing regional actors.
  • The U.S. Government continues to review Syria’s State Sponsor of Terrorism (SST) designation. 
  • Most Commerce Control List items going to Syria still require a U.S. export license.

What Exporters Should Do

The removal of Syria sanctions and the easing of […]

By |2025-11-24T11:18:20-05:00November 24, 2025|Export, International Trade, U.S. Bureau of Industry and Security (BIS), U.S. Department of Commerce (DOC), U.S. Department of State (DOS), U.S. Office of Foreign Assets Control (OFAC)|0 Comments
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ICYMI: President Trump Lifts Syria Sanctions

On June 30, 2025, President Trump issued an Executive Order formally terminating the Syria sanctions program, which had been in place for two decades.  

The Executive Order (effective July 1, 2025) revoked the following six prior executive orders dating back to 2004:

  • Executive Order 13338 of May 11, 2004 (Blocking Property of Certain Persons and Prohibiting the Export of Certain Goods to Syria),
  • Executive Order 13399 of April 25, 2006 (Blocking Property of Additional Persons in Connection With the National Emergency With Respect to Syria)
  • Executive Order 13460 of February 13, 2008 (Blocking Property of Additional Persons in Connection With the National Emergency With Respect to Syria)
  • Executive Order 13572 of April 29, 2011 (Blocking Property of Certain Persons with Respect to Human Rights Abuses in Syria)
  • Executive Order 13573 of May 18, 2011 (Blocking Property of Senior Officials of the Government of Syria)
  • Executive Order 13582 of August 17, 2011 (Blocking Property of the Government of Syria and Prohibiting Certain Transactions with Respect to Syria).

The revocation of Executive Order 13338 ended the national emergency that underpinned the subsequent executive orders.

The Executive Order also waived certain sanctions imposed by the Syria Accountability Act and the Chemical and Biological Weapons Control and Warfare Elimination Act.

On […]

By |2025-07-03T09:29:53-04:00July 3, 2025|Countries, Enforcement, U.S. Department of State (DOS), U.S. International Trade Commission (USITC), U.S. Office of Foreign Assets Control (OFAC)|0 Comments
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