Petitioning OFAC to Unblock Funds or Assets

Petitioning OFAC to Unblock Your Funds or Assets

Having your funds or assets blocked by the Office of Foreign Assets Control (OFAC) can be an incredibly frustrating situation. Not being able to access your own money or property is a major hardship for most people or businesses. The good news is that OFAC does allow for petitioning to get your funds or assets unblocked through a specific licensing process. This article will walk you through everything you need to know about petitioning OFAC to release your blocked funds or assets.

What is OFAC and How Do They Block Assets?

OFAC is an office within the U.S. Department of Treasury that administers and enforces economic and trade sanctions against foreign countries, entities, and individuals. Their goal is to carry out U.S. foreign policy and national security objectives. OFAC has the power to designate certain entities as “Specially Designated Nationals” (SDNs). Any property or assets belonging to SDNs are considered “blocked” under OFAC regulations.

For example, if you tried to wire money to someone who has been designated an SDN, that transfer would be blocked and the funds seized. The same thing can happen if you receive a wire from an SDN, even if you didn’t realize who you were transacting with. In some cases, assets can even be blocked if they are linked to or derived from dealings with SDNs [1].

OFAC has the authority to block transactions and freeze assets under several different sanctions programs targeting countries like Iran, North Korea, Syria, and regions such as the Crimea region of Ukraine. They also block assets related to terrorism, narcotics trafficking, proliferation of weapons of mass destruction, and other threats to national security.

Petitioning for the Release of Blocked Funds

If your funds or assets have been blocked by OFAC, you have the right to request they be unblocked or released. This requires petitioning OFAC through a specific license application process. Specific licenses allow for exceptions to the blocking rules on a case-by-case basis.

According to OFAC, “The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. Each year, OFAC removes hundreds of individuals and entities from the SDN List.” [2].

Some key things to know about petitioning to release blocked funds:

Christine Twomey

2024-03-21

Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.

Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

Keisha Parris

2024-03-15

Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.

Taïko Beauty

2024-03-15

I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!

Anthony Williams

2024-03-12

Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.

Loveth Okpedo

2024-03-12

Very professional, very transparent, over all a great experience

Bee L

2024-02-28

Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.

divesh patel

2024-02-24

I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

Load more

Google rating score: 4.9 of 5, based on 736 reviews

• You must file a specific license application and make your case for why the funds should be unblocked
• There is no guarantee OFAC will approve your request
• Each case is reviewed individually on its merits
• OFAC aims to be transparent about the review process and licensing decisions
• Having a sanctions lawyer assist greatly improves your chances

How to File an OFAC License Application

To start the process of requesting the release of blocked funds or assets, you need to file a specific license application with OFAC. There are a few ways this can be done:

1. File an electronic application through OFAC’s website – This is the preferred method. You can file a web form detailing the who, what, when, where, why related to your blocked transaction and funds. OFAC encourages filing online applications for blocked funds cases. [3]
2. Print and mail a license application form – You can download the paper application from the OFAC website, fill it out, and mail it in. This is more time consuming.
3. Email a letter request – For certain limited cases, you can email a letter to OFAC requesting the specific license and explaining the details.

Your license application should include as much information as possible, such as:

• Your full legal name and contact information
• Information about the blocked transaction – dates, amounts, parties involved
• Reasoning for why the funds should be released
• Supporting documentation – bank records, correspondence, contracts, invoices, etc.

Be thorough and make a compelling case in your application. The more details and evidence you can provide, the better. Having an experienced sanctions lawyer draft the license request is highly recommended, as they will know how to frame the arguments in a persuasive way.

Specific Details Needed for Blocked Funds Transfers

If your situation involves an blocked funds transfer or wire transaction, the license application process has some unique requirements:

• You should explain the nature of the transaction – who sent it, who was meant to receive it, through which banks, etc.
• Provide transaction records like SWIFT messages, payment confirmations, bank statements, and any other relevant documentation
• Include an explanation for why the funds transfer should not have been blocked
• Provide new payment instructions for where the funds should be sent if released

Essentially, you need to give OFAC a full picture of what happened and make your best case for freeing up the funds. Having concrete evidence like bank records is vital. OFAC specifically encourages online license applications for blocked funds transfer cases. [4]

What to Expect After Filing Your OFAC License Application

Once you submit your specific license application, here is general guidance on what to expect next:

• OFAC will review your request – This may take weeks or even months depending on the complexity.
• You may receive additional questions or document requests from OFAC – They frequently ask for more details or documentation to vet the case.
• OFAC will conduct interagency research – They coordinate with other government agencies to gather information.
• You will eventually receive a formal response – This could be an approval, denial, or request for more information.
• Approved licenses often come with conditions – Terms you must comply with to use the released funds.
• Denied requests can be appealed within 30 days – Though appeals are still a long shot.
• The process typically takes a minimum of 2-3 months – More complex cases can drag on much longer.

Try to be patient as OFAC reviews your license application. They receive a high volume of requests. Keep in mind their mandate is national security, not processing petitions quickly. Having an experienced OFAC attorney can help speed things up.

What to Include in Your License Application

Crafting a persuasive license application is critical if you want to convince OFAC to release your blocked funds or assets. Here are some tips on what to include:

• Background information – Explain who you are, your business or occupation, where you are located, and a brief history of your situation.
• Transaction details – Thoroughly describe the activity that triggered the blocking, including dates, amounts, parties, banks, etc.
• Reason for release – Make your strongest case for why the funds should be unblocked, with supporting evidence.
• Intended use of funds – Outline what you intend to do with the money if released and why that aligns with OFAC’s goals.
• Documentation – Bank records, contracts, invoices, correspondence, or anything that supports your position.
• New payment instructions – If requesting release of blocked funds transfer, provide updated wire instructions.

Always be truthful in your OFAC application, as any deception could lead to criminal penalties. Be detailed yet concise. And explain how authorizing the release upholds the broader mission of OFAC sanctions programs.

Common Reasons Funds Get Blocked by OFAC

If your assets have been frozen by OFAC, it helps to understand some of the common scenarios that lead to blocking actions:

• Transactions with sanctioned countries – Any transfers involving countries under OFAC sanctions like Iran, North Korea, Syria, Crimea, Cuba, etc. will be blocked.
• Dealings with SDNs – Transactions with named Specially Designated Nationals individuals or entities on the OFAC list will be seized.
• False positives – In some cases, funds are blocked mistakenly such as similar name mix-ups.
• Indirect connections – Transactions associated with sanctioned parties get flagged, even if indirect.
• Forfeitures – Illegal activity like money laundering can prompt asset seizure.

If you believe your funds were blocked erroneously, make that clear in your license application and provide evidence. For indirect connections, explain the loose association and how it doesn’t justify blocking based on OFAC guidance.

Key Reasons OFAC May Deny Your Request

While OFAC does grant many license applications, they also deny a fair number of requests. Some common reasons your petition to unblock funds could get rejected include:

• Insufficient information provided
• Inability to verify statements and documentation
• Funds tied to sanctioned parties like SDNs
• Transaction violates national security interests
• Funds linked to criminal activity
• Petitioner located in sanctioned country
• Deceptive or contradictory information

Avoid these pitfalls when filing your application. Make sure you include extensive details and documentation that OFAC can easily verify. Be 100% truthful. And clearly explain how releasing the assets aligns with OFAC’s goals, not just your own interests.

Can You Get Help With Your OFAC License Request?

Technically, anyone can petition OFAC directly to release blocked property and funds. However, your chances of success greatly improve when you have an experienced OFAC attorney assist with the process.

The laws and regulations governing OFAC licensing are complex. There are nuances to presenting a persuasive case that laypeople may miss. An attorney who specializes in OFAC cases will know exactly what information to include, what details to emphasize, and how to construct effective arguments.

They can advise you on which type of license to pursue, help collect documentation, and ensure you submit a complete application. If your initial request gets denied, a lawyer can file an appeal and represent you in interactions with OFAC. Their expertise significantly improves the odds your petition will succeed.

What Happens if OFAC Approves Your Request?

Getting your blocked funds released is a huge relief, but it’s not always the end of the road. Here is what typically happens after OFAC grants your license:

• You will receive a written approval outlining the terms and timeline.
• Any requirements or restrictions will be explained.
• You must comply with all conditions laid out to use the funds.
• OFAC sends banks instructions to release the blocked assets.
• Banks review the license and validate instructions.
• Funds get unblocked and become accessible based on the timeline given.
• OFAC may require follow-up documentation from you on use of funds.

Even once approved, the license process can move slowly as banks confirm instructions and validate transactions. But ultimately you will regain access to your funds or property. Just be sure to closely follow all terms set by OFAC.