Who Needs to Get an OFAC License and How to Obtain One

An OFAC (Office of Foreign Assets Control) license is required for individuals or entities planning to engage in transactions with individuals or entities subject to U.S. sanctions. This applies to both U.S. and foreign companies and persons, as long as their activities fall under U.S. jurisdiction.

When is an OFAC License Required?

1. Trading with Sanctioned Countries

   If you plan to do business or engage in transactions with companies or individuals from sanctioned countries (e.g., Iran, North Korea, Syria), an OFAC license is required.)

2. Financial Transactions

   Banks and financial institutions must obtain an OFAC license if they want to conduct financial transactions involving sanctioned persons or entities.

3. Exports and Imports

   Companies involved in exporting or importing sanctioned goods and services must have an OFAC license.

4. Investments and Partnerships

   Investors planning to invest in sanctioned businesses or projects also need to obtain an OFAC license.

5. Service Providers

   Providers of services such as legal, consulting, or other professional services require a license if their activities involve sanctioned persons or entities.

Types of Licenses

OFAC grants two types of licenses:

– General Licenses Applicable to certain broad activities.

– Individual Licenses - Tailored to specific transactions or activities.

How to Apply for an OFAC License

License applications are submitted through the OFAC Licensing Portal The application process follows these steps:

1. Submission of the application

2. Management review

3. Interagency review

4. Approval by the U.S. Department of the Treasury

5. Pieteikuma iesniedzēja apstiprinājums

5. Final approval by the applicant

Applicants can check the status of their submission through the portal. For additional support, a callback from OFAC is also available for license applications. You can learn more at their recent actions page here.

If you're unsure whether you need an OFAC license, consult a specialist help@atbilst.lv

Additional Reading

For more insights on U.S. export controls, read the article “USA Strengthening Export Controls: New Measures and Historical Precedents”