# OFAC sanctions removal: asset unblocking procedure > Removing OFAC sanctions and unblocking assets: how the U.S. Treasury process works, delisting petitions and what UHNW clients must document to release frozen funds. Author: Ксения Воронова — юрист, Family Office (https://wiki.private.law/authors/voronova) Last modified: 2026-06-04T06:13:00.000Z Canonical: https://wiki.private.law/en/ofac Topics: investments Jurisdictions: usa Functional tags: fund-vehicle Semantic tags: fund-vehicle --- Attorney, Family Office --- # Current situation overview The U.S. Office of Foreign Assets Control (OFAC) is the agency responsible for implementing U.S. economic and trade sanctions. ### OFAC has the following powers - freezing bank accounts and financial assets - prohibition on conducting transactions with the object and/or person - termination of SWIFT system access for banks - prohibition on investments in sanctioned companies and/or sectors - restriction on use of U.S. currency and financial system The legal basis for challenging OFAC asset blocking is the Administrative Procedure Act, which allows challenging federal agency decisions if they are "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law." Based on more than 20 cases at our firm and available information on colleagues' cases, successful challenges can be built on the following arguments: - grounds for blocking have ceased (resignation from position, company liquidation) - court-ordered settlement (resignation from position, termination of contacts) - OFAC error (mistaken identity) Challenging OFAC's authority and insufficient evidence have not led to success. # Administrative appeal procedure The first step is filing an application for a specific or general OFAC license: - Specific license: individual authorization for a particular transaction or activity - General license: authorization for a certain type of transaction for all persons meeting established criteria > 💡 Application review takes an average of 18 months even for simple cases. OFAC may issue a license immediately or deny issuance without explanation. # Judicial appeal In case of OFAC denial, the next step is going to court: - filing a lawsuit in U.S. federal court - challenging OFAC actions based on the Administrative Procedure Act - proving the illegality, arbitrariness, or unreasonableness of OFAC's decision --- Most settlements on sanctions matters are concluded through judicial proceedings. These settlements typically include: - Elimination of the root cause of sanctions imposition (e.g., ceasing certain activities) - Adoption of negative covenants, such as commitments not to hold certain positions or contact sanctioned persons - Consent to periodic monitoring by OFAC # Role of law firms Law firms are permitted to represent sanctioned persons' interests in ensuring access to defense of their rights. This exception is provided in most sanctions programs and confirmed by General License No. 14 under many sanctions regimes. ### Law firms may - Advise on sanctions applicability - File license applications - Represent clients' interests in court - Interact with OFAC on behalf of the client # Information requests There is an option to send clarification requests to OFAC, but this procedure has significant limitations: - Request review time is also approximately 18 months - OFAC response content typically does not go beyond publicly available information in press releases - In most cases, sending requests is impractical due to lengthy waiting times and predictable responses > 💡 > ### Solution example > --- --- ## Factual claims - The legal basis for challenging OFAC asset blocking is the Administrative Procedure Act, which allows challenging federal agency decisions if they are "arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law." - Based on more than 20 cases at our firm and available information on colleagues' cases, successful challenges can be built on the following arguments: - Law firms are permitted to represent sanctioned persons' interests in ensuring access to defense of their rights.