In a move that attorneys representing Specially Designated Nationals (“SDN”) can appreciate, the United States Department of the Treasury Office of Foreign Assets Control (“OFAC”) has removed 14 previously designated individuals and entities from the SDN list. As such, U.S. persons are no longer prohibited from engaging in transactions with these individuals. The persons removed were originally designated under the Foreign Narcotics Kingpin Designation Act (“Kingpin Act”).

Unlike in scenarios where OFAC designates individuals, there was no press release issued by the Department of the Treasury indicating the circumstances surrounding the removal.

Generally, when one goes to challenge their designation under an OFAC administered sanctions program they do not know what OFAC is looking for. As such, challengers of a designation must blindly respond to the designation. Once the initial request for reconsideration is received, then OFAC will typically send a letter requesting additional information about the designees relationship and transactions with certain individuals and/or entities.  Many times these individuals and entities are also SDNs, but not always.

It seems to me that it would be much easier if OFAC would just inform the designees what information they are looking for up front. That way the party challenging the designation could address all of OFAC’s concerns in their initial submission. In addition, OFAC wouldn’t have to deal with receiving and reviewing multiple submissions regarding the same matter.

The author of this blog is Erich Ferrari, an attorney specializing in OFAC litigation. If you have any questions please contact him at 202-280-6370 at 202-351-6161 or ferrari@ferrari-legal.com.