U.S. Office of Foreign Assets Control (OFAC) Archives | Customs & International Trade Law Blog

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 Jennifer Diaz|2026-08-27T16:15:24-04:00August 27, 2026|Export, U.S. Office of Foreign Assets Control (OFAC)|Comments Off

New OFAC Advisory: Signs of Sham Transactions and Sanctions Evasion post-divestment from Blocked Persons

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 Jennifer Diaz|2026-04-03T14:15:24-04:00April 3, 2026|Enforcement, International Law, International Trade, Investigation, U.S. Office of Foreign Assets Control (OFAC)|Comments Off

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 Jennifer Diaz|2026-04-03T10:52:11-04:00April 3, 2026|Enforcement, International Law, Trade Policy, U.S. Department of Justice (DOJ), U.S. Office of Foreign Assets Control (OFAC)|Comments Off

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 Jennifer Diaz|2025-11-24T11:18:14-05:00November 24, 2025|Export, International Trade, U.S. Department of Commerce (DOC), U.S. Office of Foreign Assets Control (OFAC)|Comments Off

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 Jennifer Diaz|2025-07-03T09:29:44-04:00July 3, 2025|Countries, Enforcement, U.S. Department of State (DOS), U.S. International Trade Commission (USITC), U.S. Office of Foreign Assets Control (OFAC)|Comments Off

ICYMI: Congress Doubles the Statute of Limitations for Sanctions Violations

On April 24, 2024, President Biden signed into law H.R. 815, an emergency supplemental appropriations bill that included spending for Israel and Ukraine, along with other priorities such as data protection from foreign adversaries.

Within the fentanyl trafficking section, the bill included a provision that doubles the statute of limitations for all sanctions violations from five to 10 years. It also extended the limitation for certain export control violations such as biological weapon proliferation.

On September 11, 2024, the Department of Treasury’s Office of Foreign Assets Control (OFAC) issued an interim final rule amending their Reporting, Procedures and Penalties Regulations to reflect the new statute of limitations. The new rule extends recordkeeping requirements for certain transactions from five to 10 years.

Impact

This policy change will change how exporters keep records, maintain compliance programs, and conduct due diligence. It also allows more time for the government to investigate violations.

Government

The Department of Justice and the Department of Treasury’s Office of Foreign Assets Control (OFAC) are the primary authorities that will benefit from this policy change. Agency officials and prosecutors will now have twice as much time to investigate and bring charges against exporters.

The majority of federal crimes currently have a five-year statute of limitations. Some serious crimes such as capital murder or treason have no statute of limitations, other serious crimes such as embezzlement from a federal financial institution or racketeering have a 10 year limit.

Congress deliberately extending the limitations period in line with serious federal crimes sends a clear […]

By Jennifer Diaz|2024-09-13T12:01:08-04:00June 21, 2024|EAR, Export, U.S. Office of Foreign Assets Control (OFAC)|Comments Off

Cuba Policy Shift: Administration Eases Restrictions on Small Businesses

On May 28, 2024, the Biden administration announced new measures easing restrictions on independent small businesses in Cuba. The announcement follows a recent decision by the State Department to remove Cuba from the list of countries deemed uncooperative on counterterrorism.

The Administration criticized the Cuban government in the announcement, saying: “We know the Cuban economy is in dire straits amid recurring shortages of fuel, electricity, increasingly even food. It’s clear the communist experiment of Cuba has failed, the government is no longer able to provide for its citizens’ most basic needs.”

The new measures implemented by the Department of Treasury’s Office of Foreign Assets Control (OFAC) include four main parts:

1. Authorized Internet-Based Services and Software.

Cuban small businesses will now be able to access additional internet-based services such as video conferencing, social media, maps, e-learning, automated translation, and other online services.

U.S.-based entities will be allowed to provide cloud-based services to these small businesses. OFAC is also authorizing the export or reexport of Cuban-origin software and mobile applications from the United States to third countries.

2. Re-defining “Self-Employment.”

OFAC is scrapping the term “self-employed individual” and replacing it with a new term: “independent private sector entrepreneur.” The new term will still cover traditional self-employed individuals such as business owners, but it will also cover private cooperatives or small businesses that are wholly owned by such individuals.

By Jennifer Diaz|2024-05-31T13:02:03-04:00May 28, 2024|Cuba, U.S. Office of Foreign Assets Control (OFAC)|Comments Off

Customs and Trade Law Weekly Snapshot

Here is a recap of the latest customs and international trade law news:

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By Jennifer Diaz|2023-01-06T11:29:53-05:00January 6, 2023|Best Practices, Export, Import, International Trade, U.S. Customs and Border Protection (CBP), U.S. Department of Commerce (DOC), U.S. Office of Foreign Assets Control (OFAC)|Comments Off

2022: A Year in Review

From all of us at Diaz Trade Law, we are immensely grateful for your support this year. While returning to a new normal post-pandemic, Diaz Trade Law still managed to save our clients MILLIONS of dollars in 2022. It is with great joy that we finish off 2022 filled with numerous achievements and accomplishments we are humbled to share with you. We look forward to assisting you in what we envision will be a better and brighter 2023!

Below we share some of our top 2022 success stories with you.

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