It seems that everyday over the past few weeks I have been getting calls pertaining to the new Libya Sanctions. Moreover, every few days or so OFAC is either designating more parties under the new Libya sanctions program or promulgating new general licenses relating to those sanctions. Yesterday was no exception with OFAC adding a number of parties to the Specially Designated Nationals (SDN) List.

Amongst those designated was Libyan Foreign Minister Moussa Koussa. Mr. Koussa was designated alongside 16 entities in Libya’s banking, oil, aviation and investment sectors. All of these entities are owned by the Government of Libya. Mr. Koussa, who previously served as the Head of Libya’s Intelligence Agency, has had all of his assets subject to U.S. jurisdiction frozen as a result of his designation as an SDN. In addition, this designation prohibits U.S. persons from engaging in transactions with him.

In addition to those parties blocked yesterday the new Libya sanctions also blocks all property and interests in property of the Government of Libya and its agencies, instrumentalities and controlled entities. Needless to say that these sanctions could potentially have a devastating effect on the designated parties. Individuals, in particular, suffer enormously from an SDN designation. However, all hope is not lost. A blocked party can petition OFAC to have their name removed from the SDN List. There is a formal process laid out in the Code of Federal Regulations to initiate the reconsideration process, however, it is often a complicated matter and can take a number of years before a name is officially removed. As such, it is wise to engage legal counsel experienced in such matters to handle the case.

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