Foreign Assets Controls, Sanctions & Embargoes

Alston & Bird has one of the most active and experienced Office of Foreign Assets Control (OFAC) sanctions and embargoes practices in the United States. For over 30 years, we have represented a wide variety of U.S. and foreign companies with international operations, including some of the largest financial institutions in the world, as well as major industrial companies in the pharmaceutical, chemicals, automation, manufacturing and defense sectors. We are in regular contact with both staff and political-level officials at OFAC, the Department of the Treasury and other relevant agencies, and therefore are closely attuned to policy developments that affect how OFAC’s programs are devised and implemented.

Our work on OFAC matters includes extensive analysis and advice on compliance with all of OFAC’s regulations by clients’ international operations, including third-country subsidiaries and branches. We frequently assist in the development and implementation of compliance programs, counsel on specific transactions, seek regulatory interpretations, monitor regulatory developments and prepare voluntary disclosures of violations to OFAC. Because of our extensive representation of large international banks and mutual funds, we have particular expertise in the application of U.S. sanctions to the operations of banks and other financial institutions and are well-versed in industry trends and concerns, including OFAC issues that increasingly arise on examination by U.S bank regulators.

Our lawyers also assist clients in obtaining specific licenses from OFAC to authorize otherwise prohibited transactions with Cuba, North Korea, Iran, Sudan, Burma and other embargoed countries. We have vigorously defended against and successfully negotiated numerous civil and criminal enforcement matters with regard to violations of the embargoes against North Korea, Libya, Cuba, Iran, Iraq and other countries.

In addition, we have been active in advising international clients on how to comply with U.S. legislation, such as the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act (Helms-Burton), the Iran Sanctions Act (ISA), the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2010 (CISADA) and state and local legislation, as well as related foreign blocking statutes.

Recent projects that we have handled on behalf of our clients have included:

• scores of civil enforcement matters for alleged violations of the embargoes against North Korea, Libya, Cuba, Iraq and other countries;
• advising numerous clients on complex OFAC compliance issues under all OFAC country programs, such as U.S. dollar clearing, trading of blocked debt, set-offs, third-country inventory and de minimis U.S. content issues, letters of credit and banker’s acceptances;
• structuring of electronic banking products, ACH arrangements and proprietary payment systems to comply with OFAC concerns;
• successful negotiation of compliance and enforcement issues involving multiple jurisdictions and countries;
• successful representation of a client in a response to an OFAC administrative subpoena for allegedly selling products in Iran; and
• representation in voluntary disclosure involving alleged facilitation.