What is OFAC: Do I Need an OFAC Attorney for Help?

What is OFAC?

OFAC refers to the Office of Foreign Assets Control. Sometimes, when taxpayers have transactions or need to engage in transactions in countries in which sanctions have been initiated, they may have to walk through the OFAC maze to make that happen. The United States has issued sanctions against many different countries and the level and extent of the sanctions may vary depending on which country. As a result of these sanctions, taxpayers who may have assets in the foreign country are unable to access those assets or to conduct transactions that should not fall under the sanctions that have been issued against the country as a whole. It could be as simple as a taxpayer who wants to transfer money out of that country and into their US or foreign bank account that is located in a non-OOAC country.

About OFAC

As provided by OFAC:

• • • “OFAC is the successor to the Office of Foreign Funds Control (the “FFC”), which was established at the advent of World War II following the German invasion of Norway in 1940. The FFC program was administered by the Secretary of the Treasury throughout the war. The FFC’s initial purpose was to prevent Nazi use of the occupied countries’ holdings of foreign exchange and securities and to prevent forced repatriation of funds belonging to nationals of those countries. These controls were later extended to protect assets of other invaded countries. After the United States formally entered World War II, the FFC played a leading role in economic warfare against the Axis powers by blocking enemy assets and prohibiting foreign trade and financial transactions.”

Specially Designated Nationals List 

• • • “As part of its enforcement efforts, OFAC publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific. Collectively, such individuals and companies are called “Specially Designated Nationals” or “SDNs.” Their assets are blocked and U.S. persons are generally prohibited from dealing with them.”

Sanctions Programs and Country Information

Here is an updated list of Sanctions Programs and Country Information

OFAC License Application Page

• • • A license is an authorization from OFAC to engage in a transaction that otherwise would be prohibited. To apply for a license, click the link below or scroll down for more information on the different licensing categories.”

Release of Blocked Funds

• • • If your funds have been blocked or “frozen” by a financial institution or other party due to a possible link to OFAC-administered sanctions, you may apply for a specific license by clicking the Apply for a License button above. Select “Release of Blocked Funds” as the application type on the first page of the application.

Travel to Cuba

• • • You may not need to apply for a specific license.  Before applying for a specific license, please review the information about Cuba travel and the 12 categories of general licenses related to Cuba travel found in the Cuba Assets Control Regulations (31 CFR part 515).  To the extent that your proposed travel falls within the scope of an existing general license, you may proceed without applying for a specific license from OFAC.  General licenses constitute blanket authorization for those transactions set forth in the relevant regulation and are self-selecting and self-executing.  Persons traveling pursuant to a general license do not need to notify OFAC of their travel plans.  It is OFAC’s policy not to grant applications for a specific license authorizing transactions where a general license exists.

    • If you determine that a general license does not apply, you may apply for a specific license by using this online application process.  OFAC will consider the issuance of specific licenses on a case-by-case basis when a general license provision is not available.  Please read all instructions and relevant information fully before submitting an application for a specific license.

Do you have questions about traveling to Cuba?

• • • Please review the Frequently Asked Questions regarding recent changes in Cuba sanctions policy.

    • Please note that the U.S. Department of the Treasury does not issue visas to travel to Cuba. For more information on visas to travel to Cuba please visit the Department of State’s website on International Travel for Cuba and visit the section of this site labeled, “Entry, Exit & Visa Requirements.”

Agricultural and Medical Activities in Iran and Sudan

For information related to licenses authorizing exports of agricultural commodities, medicine, and medical devices to Iran and Sudan pursuant to the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA), please see our TSRA page, TSRA Frequently Asked Questions, and TSRA Application Guidelines.

Frequently Asked Questions on OFAC Licenses

For additional information, please see our Frequently Asked Questions regarding OFAC licenses and licensing procedures.

Do You Need an OFAC Attorney?

Oftentimes, Taxpayers can prepare and submit an OFAC application without the help of an Attorney or CPA. If you are seeking legal help, you should be sure to reach out to a Board-Certified Nationality/Immigration Lawyer.

Also, please beware of lawyers making misrepresentations about their experience level and education.