Meshkat Law advises clients on OFAC licensing and related guidance, including general license applicability, specific license applications, amendments and supplements, and interpretive guidance requests. We help clients understand when OFAC authorization is required, how to structure license requests, and how to integrate license conditions into day-to-day operations.
OFAC licenses are authorizations that permit certain transactions that would otherwise be prohibited under U.S. sanctions laws and regulations. A general license authorizes a particular type of transaction for a class of persons without the need to apply individually—in other words, they are self-executing—while a specific license is a written authorization issued by OFAC to a particular person or entity in response to a written license application. We help clients determine whether their intended activities fall within the scope of existing general licenses or limited statutory exemptions and, where they do not, whether to seek specific license authorization, interpretive guidance, or both through OFAC’s licensing process, and we assist and represent clients in preparing and submitting those requests.
We advise clients on whether their proposed transactions are prohibited, exempt, or authorized under existing OFAC regulations and general licenses. This includes assessing relevant sanctions programs, counterparties, ownership or control issues, and the scope and limits of available general and specific license pathways. Where it is unclear whether an exemption or general license applies, we help determine whether to seek interpretive guidance from OFAC and, if appropriate, combine that request with a specific license application so that OFAC can either confirm authorization or consider issuing a license.
We prepare and submit specific license applications to OFAC for a range of activities, including humanitarian trade, commercial transactions, and the release or transfer of blocked funds (i.e., unblocking applications). We also assist clients with pending applications by reviewing draft submissions, identifying gaps against OFAC requirements and best practices, and preparing targeted supplemental submissions during OFAC’s review process, as needed.
The following matters are representative of OFAC licensing work handled by our attorney.
Prior results do not guarantee a similar outcome.
In general, OFAC administered sanctions programs prohibit persons subject to U.S. jurisdiction from engaging in virtually any transactions or dealings with a sanctioned target, unless exempt by statute or authorized by an OFAC issued license.
Depending on the respective sanctions authority, exemptions generally include transactions ordinarily incident to travel or the exchange of informational materials, and several others. However, the applicability of such exemptions ultimately depends on the relevant OFAC administered sanctions laws and regulations.
For any transactions that are prohibited and not otherwise exempt, an OFAC general or specific license would be required in order to proceed.
A general license authorizes a particular type of transaction for a class of persons that would otherwise be prohibited under applicable OFAC administered sanctions laws and regulations, without the need to apply to the agency for a license to engage in the transaction.
For any other activity that would be prohibited and that is not covered by a general license or otherwise statutorily exempt, the concerned person can submit a written application to OFAC requesting specific license authorization. If after reviewing the application OFAC decides to grant the requested authorization, it will issue to the particular individual or entity a specific license.
OFAC administered sanctions programs on comprehensively or extensively sanctioned countries or regions, such as Iran, North Korea, Cuba, Venezuela, Russia and certain regions of Ukraine, incorporate various general licenses related to the commercial sale, exportation, or reexportation of certain agricultural commodities, medicine, and medical devices. There are also certain statutory exemptions available, depending on the program, for donations of articles such as food, clothing, and medicine, intended to be used to relieve human suffering.
However, these general license authorizations are limited in their scope and terms, and persons making use of them should ensure full compliance. In addition, BIS’s Export Administration Regulations (EAR) also impose certain simultaneous embargo controls on all such countries and regions, and although they also contain various exclusions and exceptions for food, medicine, and/or medical devices, they have their own respective scope and limitations that must be considered.
The Iranian Transactions and Sanctions Regulations (ITSR) prohibit U.S. persons–a broadly defined category–from engaging in virtually any transactions or dealings with Iran or the Government of Iran, unless statutorily exempt or authorized under a license issued by OFAC. A general license is available for certain types of real and personal property transactions. For any other real or personal property transactions related to Iran and that are not covered by the general license, a specific license from OFAC would be necessary.
Whether the ITSR’s general license covers any intended real or personal property transactions related to Iran requires a fact specific assessment. Check out our blog post for more information.
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License Strategy and Applicability