What happens to my pending commercial contracts in Chile if I am designated while transactions are in progress?

Chilean counterparties with US banking exposure will likely suspend performance immediately to avoid secondary sanctions risk. Existing contracts may contain force majeure or sanctions compliance clauses permitting termination. You can apply to OFAC for a specific licence authorising wind-down of pre-existing obligations, typically granted for 30–180 days depending on transaction complexity. Chilean courts generally will not compel performance that would expose a party to US sanctions liability. Documenting the contract timeline and applying for wind-down authorisation promptly can preserve commercial relationships and limit damages claims against you.