For more than a century, the United States has used trade restrictions to punish foreign nations and individuals who disagree with the foreign policy objectives of the United States. The task of implementing sanctions now falls to the Office of Foreign Assets Control of the U.S. Treasury Department (OFAC). Generally speaking, the President, in accordance with statute, will issue an Executive Order (EO) designating some country, company or individual as subject to sanctions. OFAC will then issue guidance as to the Executive Order and designate “Specially Designated Nations” (SDN). American entities are then prohibited from conducting business with those entities under most circumstances.
Although the sanctions prohibit American entities from engaging in commercial transactions with SDN’s, they have a much broader effect. Secondary sanctions apply to entirely non-U.S. entities operating completely outside the territorial jurisdiction of the U.S. Entities that deal with SDN’s can themselves become SDN’s or Foreign Sanctions Evaders (FSE). Once an entity is identified as a SDN or a FSE, Americans are prohibited from conducting business with them as well.
OFAC administers a wide variety of sanctions, including nation-based sanctions and conduct-based sanctions. We represent individuals in a variety of matters that arise under the various sanctions regimes. The services we offer include: