OFAC COMPLIANCE &
SANCTIONS COUNSEL
FOR GLOBAL CAPITAL
Treasury Licensing, SDN Screening, 50-Percent Rule Due Diligence & Cross-Border Transfer Compliance for EB-5, E-2 and Institutions
Kameli Law delivers rigorous sanctions representation under federal IEEPA and 31 CFR regulations, securing OFAC specific licenses, unblocking frozen banking transfers, and structuring compliant investment pipelines.
Request an OFAC Compliance AssessmentTreasury Sanctions Compliance Authority
The OFAC Sanctions & Compliance Practice Group at Kameli Law advises multinational corporations, EB-5 Regional Centers, financial intermediaries, and high-net-worth investors navigating the economic sanctions enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). Operating under 31 CFR Parts 500–599, we structure cross-border capital transfers, audit beneficial ownership under the 50-Percent Rule, petition for Specific Licenses, and resolve blocked assets.
Strict Liability
Civil Fines Without Proof of Intent
Treasury Petitions
OFAC Specific Licensing & Authorizations
Asset Recovery
Unblocking Wire Transfers & Escrows
Under federal law, civil violations of OFAC regulations carry strict liability. This means an entity or individual can be penalized hundreds of thousands of dollars per violation even if they acted in complete good faith, possessed no intent to violate sanctions, and were unaware that a counterparty or intermediate bank had nexus to a sanctioned jurisdiction.
OFAC Sanctions Defense & Licensing
Select a focus area below to examine Treasury specific licensing, SDN screening, and asset unblocking procedures.
Petitioning the Treasury Department for formal written authorization to conduct transactions otherwise prohibited by economic sanctions programs. We represent individuals transferring personal funds from real estate sales, inheritance liquidations, or business divestments in restricted countries.
Show Licensing Criteria & Capital Origin Substantiation
Formal License Petition Drafting: Structuring comprehensive applications to OFAC demonstrating non-sanctioned beneficial origins of capital.
Real Property & Estate Transfers: Securing authorization to liquidate and transfer assets under the Iranian Transactions and Sanctions Regulations (ITSR).
Third-Country Currency Exchange Proof: Validating the use of licensed currency exchange houses (Sarafi) without interacting with Specially Designated Nationals.
Performing forensic screenings of foreign business partners, investors, and corporate holding structures against the Specially Designated Nationals (SDN) and Consolidated Sanctions Lists. We audit corporate ownership chains to prevent violations of OFAC’s binding 50-Percent Rule.
Show Beneficial Ownership Rules & Corporate Tracing
The 50-Percent Ownership Rule: Any entity owned in the aggregate, directly or indirectly, 50% or more by one or more blocked persons is itself blocked by operation of law.
Beneficial Ownership Forensics: Uncovering layered corporate veil structures, nominee shareholders, and offshore trusts to confirm zero SDN control.
Secondary Sanctions Shielding: Protecting non-U.S. entities from triggering secondary sanctions when participating in cross-border investment consortia.
Intervening when commercial banks, wire clearinghouses, or escrow managers freeze funds due to real or mistaken sanctions hits. We file formal Applications for the Release of Blocked Funds directly with OFAC Sanctions Compliance and Sanctions Targeting officers.
Show Release Petitions & Intermediary Bank Protocols
Application for Release of Blocked Funds: Establishing that the underlying wire transfer involved no sanctioned parties or was authorized by general license.
False-Positive Resolution: Resolving name similarities, erroneous country-of-origin tags, and mistaken SWIFT interbank routing blocks.
Bank Legal Counsel Liaisons: Direct attorney-to-attorney negotiation with compliance counsel at major tier-1 U.S. and European financial institutions.
Representing entities that uncover past unintentional sanctions violations. Under OFAC Enforcement Guidelines, a properly timed and comprehensive Voluntary Self-Disclosure (VSD) substantially mitigates civil monetary penalties by up to 50% and avoids criminal referrals.
Show VSD Guidelines & Remediation Frameworks
Statutory Penalty Mitigation: Submitting formal VSD filings that establish qualifying cooperation, reducing potential civil penalties by 50% or more.
Internal Compliance Auditing: Conducting privileged internal investigations to ascertain the root causes of sanctions control breakdowns.
Corrective Action Architecture: Implementing remedial policies, automated screening tools, and employee training to satisfy Treasury investigators.
Risk & Compliance Matrix
Sanctions Pitfalls & Legal Protections
How Kameli Law protects immigration programs, investment funds, and personal capital transfers from OFAC liabilities.
| Immigration & Investment Scenario | OFAC Sanctions Exposure | Kameli Law Preemptive Strategy | Targeted Outcome |
|---|---|---|---|
| EB-5 / E-2 Personal Capital Transfer | Transferring proceeds from real estate or family inheritance in a comprehensively sanctioned country | Structure transfer under General License provisions or petition for an OFAC Specific License prior to wiring funds | Lawful Capital Influx; Zero Bank Holds |
| Regional Center Investor Onboarding | Accepting capital from a foreign investor holding shares in an unlisted entity owned 50%+ by an SDN | Conduct beneficial ownership screening under the 50-Percent Rule and audit multi-tier corporate cap tables | Strict Liability Fines Preempted |
| Frozen Wire Transfer in Intermediary Bank | U.S. correspondent bank blocks commercial or investment funds due to geographical keywords or name matches | File Form TD F 90-22.50 (Application for Release of Blocked Funds) accompanied by forensic legal proof of clean origin | Immediate Release of Blocked Funds |
| Unintentional Past Sanctions Violation | Entity discovers it facilitated services to a sanctioned party, facing mandatory civil fines under IEEPA | Submit an early, comprehensive Voluntary Self-Disclosure (VSD) with remedial controls to reduce fines by 50%+ | Penalty Mitigation & No Criminal Referral |
Transferring Capital or Managing Sanctioned-Market Exposure?
Have our federal OFAC compliance attorneys review your fund origin, beneficial ownership structure, and Treasury licensing requirements.
Treasury Regulatory Precision
Institutional Capability
Navigating OFAC Frameworks & Cross-Border Capital Integrity
Treasury Department sanctions are dynamic and strictly enforced. Engaging with counterparties in restricted jurisdictions without prior legal guidance risks severe financial penalties, seizure of assets by correspondent banks, and irreparable harm to immigration petitions.
Forensic Banking Paper Trails: Documenting every link in the international wire chain to satisfy U.S. financial institutions and eliminate OFAC red flags.
Immigration Fund Clearance: Aligning OFAC licenses with USCIS Form I-526E and Form I-129 filings to ensure lawful source-of-funds admissibility.
Enterprise Risk Controls: Designing institutional compliance manuals, automated screening workflows, and annual employee training modules.
Our OFAC Compliance Protocol
A four-stage tactical framework engineered to eliminate sanctions liability and ensure seamless cross-border transfers.
Sanctions Screening
Screening individuals, corporate entities, intermediate banks, and beneficial owners against the SDN and Consolidated Sanctions Lists.
Jurisdiction Audit
Evaluating transaction structures under country-specific programs (e.g., ITSR 31 CFR Part 560) to determine General License applicability.
Treasury Licensing
Drafting and submitting formal OFAC Specific License petitions, unblocking applications, or voluntary self-disclosures.
Bank Liaison & Transfer
Engaging directly with financial institution legal departments to guarantee seamless transfer execution and prevent account freezes.
Frequently
Asked Questions
Authoritative answers on OFAC specific licenses, the 50-Percent Rule, unblocking frozen transfers, and immigration capital.
What is the difference between an OFAC General License and a Specific License?
A General License is a self-executing regulatory provision published by OFAC that authorizes certain categories of transactions for the general public without needing to apply for individual permission (e.g., standard humanitarian donations, personal non-commercial remittances, or specific legal representation). In contrast, a Specific License is a formal written authorization issued directly by OFAC to a specific individual or commercial entity upon written petition, permitting a specific transaction (such as transferring real estate proceeds or business divestments from a sanctioned country) that would otherwise be prohibited by law.
What is the OFAC "50-Percent Rule" and why is it critical in investment programs?
Under official OFAC guidance, any commercial entity that is owned in the aggregate, directly or indirectly, 50 percent or more by one or more blocked persons (such as individuals on the SDN list) is itself considered a blocked entity by operation of law—even if the company is not explicitly named on OFAC’s Specially Designated Nationals (SDN) list. In EB-5 and E-2 investment programs, accepting funds from an entity partially owned by sanctioned individuals triggers strict liability violations, account seizures, and immediate denial of immigration benefits.
What should I do if a bank freezes or blocks an international wire transfer?
If a U.S. or international correspondent bank freezes funds due to sanctions compliance, the money is placed into an interest-bearing blocked account and cannot be released or returned to the sender without OFAC authorization. To recover the capital, our firm submits a formal Application for the Release of Blocked Funds (Form TD F 90-22.50) directly to the Office of Foreign Assets Control, providing unassailable evidence of the legitimate origins of the funds, resolving false-positive name hits, and establishing that the transaction is lawful.
Can an investor transfer money from the sale of an inheritance or real estate in Iran to fund an EB-5 green card?
Yes, provided the capital transfer strictly adheres to the Iranian Transactions and Sanctions Regulations (ITSR - 31 CFR Part 560). Under specific regulatory authorizations (such as 31 CFR § 560.530 and § 560.532), non-commercial personal transactions involving the liquidation and transfer of inherited property or ancestral real estate can be executed legally, provided funds do not transit through designated Iranian financial institutions and are handled via licensed money service businesses. We structure the source-of-funds filing to satisfy both OFAC rules and USCIS immigration evidentiary standards.
What is a Voluntary Self-Disclosure (VSD) and how does it protect an organization?
If a company or fund administrator inadvertently conducts a transaction that violates OFAC regulations, submitting a formal Voluntary Self-Disclosure (VSD) before the government initiates an independent investigation is the single most effective legal protection. Under OFAC Enforcement Guidelines, a qualifying VSD mitigates potential civil statutory penalties by 50% or more, often results in a simple Cautionary Letter without monetary fines, and eliminates the risk of referral to the Department of Justice for criminal prosecution.
Safeguard Your Global
Capital with OFAC Counsel
Nearly 30 years of legal leadership guiding international investors, financial institutions, and EB-5 enterprises through complex Treasury sanctions compliance and federal licensing.
Schedule an OFAC Compliance Consultation