OFAC Sanctions Lawyer — Argentina & Chile

The Office of Foreign Assets Control (OFAC) is the US Treasury’s enforcement arm for economic and trade sanctions. Although OFAC is a US federal agency, its reach extends far beyond American soil. Any transaction involving the US dollar, US financial institutions, or US-based counterparties falls within OFAC jurisdiction — even if both parties are based in Argentina or Chile. This is the principle of secondary sanctions: non-US individuals and companies can be designated if they are found to facilitate transactions with SDN-listed entities.

Argentina’s deep integration into international dollar-clearing systems means that businesses and individuals here are regularly exposed to OFAC risk. Argentine importers, exporters, financial intermediaries, and high-net-worth individuals transacting in USD are all subject to OFAC scrutiny. In recent years, OFAC has designated individuals and entities in Argentina under programmes targeting narcotics trafficking (Kingpin Act), corruption (Global Magnitsky), and organised crime. Chilean residents, particularly those involved in cross-border finance, mining, or trade with sanctioned countries, face similar exposure.

If you have been designated on the SDN List, your assets held in or transiting through the United States are frozen. US persons and entities are prohibited from dealing with you. In practice, this means cut-off from the global banking system, the inability to process payments in USD, and severe reputational damage. The consequences extend to your family members and business partners. Specialist legal intervention is essential — and urgent.

Intercollegium’s OFAC team has extensive experience challenging SDN designations across multiple sanctions programmes. Our approach is methodical and evidence-driven. The first step is a thorough review of the designation basis: what evidence did OFAC rely upon, and was there a fair opportunity to respond? We obtain the unclassified administrative record through FOIA requests and examine every factual allegation.

Where the designation is based on mistaken identity, outdated information, or legally insufficient evidence, we submit a petition for administrative reconsideration to OFAC’s Office of Global Targeting. This formal submission marshals all available evidence — bank records, business documents, travel history, sworn declarations — to demonstrate that the designation criteria were not met or no longer apply. In parallel, where appropriate, we file for judicial review in the US federal courts.

For clients who do not contest the designation but need to resume essential business or humanitarian activities, we apply for specific licences from OFAC. Licences are available for a range of purposes including payment of legal fees, access to blocked wages or pensions, and specific commercial transactions. We prepare detailed licence applications that demonstrate the transaction falls within US foreign policy interests and does not benefit sanctioned parties.

Many Argentine and Chilean clients also face a related challenge: Interpol Red Notice or diffusion circulated by a sanctioning state (such as Russia or a Central Asian republic) in parallel with the OFAC designation. Our team handles both tracks simultaneously, ensuring that removal of an Interpol notice does not inadvertently prejudice the OFAC defence and vice versa.

Chile is one of Latin America’s most open economies, with extensive trade relationships spanning North America, Europe, and Asia. Chilean businesses operating internationally are exposed to OFAC risk in several ways. Companies involved in copper export, lithium mining, and financial services often have significant USD exposure and US institutional relationships. Any business found to be dealing — even inadvertently — with OFAC-designated counterparties may face secondary designation or reputational fallout.

In Chile, OFAC designations intersect with the work of the Unidad de Análisis Financiero (UAF), Chile’s financial intelligence unit. The UAF publishes its own consolidated list that largely mirrors OFAC and UN sanctions lists. Appearance on the UAF list results in domestic asset freezes and banking difficulties quite apart from the US-side consequences. Our lawyers are experienced in addressing Chilean domestic law consequences alongside the primary US OFAC challenge.

Chilean residents connected to sanctioned countries — including Russian nationals residing in Chile, Venezuelan businesspeople, and individuals from Iran or Syria with Chilean connections — are among the most frequently targeted for designation. We provide representation in Spanish and English, ensuring clear communication throughout the process.

OFAC designations are made without prior notice. You may discover that you have been added to the SDN List only when a bank account is frozen, a payment is rejected, or a business partner informs you they can no longer transact with you. This suddenness is deliberate: OFAC aims to prevent asset concealment before the designation takes effect. However, the absence of prior notice creates significant injustice when the designation is based on error.

Once designated, you have the right to seek administrative reconsideration. There is no statutory time limit for submitting a petition, but delay allows the designation to remain in effect longer, causing ongoing financial and reputational harm. OFAC is required to review reconsideration petitions and respond, though response times vary significantly depending on the programme and OFAC’s workload.

The reconsideration process requires detailed engagement with OFAC’s Compliance division. Submissions must be in English, precisely targeted to the factual and legal bases of the designation, and accompanied by documentary evidence. Our team prepares these submissions to the highest standard, drawing on experience across Global Magnitsky, Kingpin, Venezuela, Russia, Iran, and other programmes.

Intercollegium is an international law firm specialising in Interpol proceedings, extradition defence, and economic sanctions. Our OFAC practice operates alongside our Interpol team, making us uniquely positioned to handle cases where sanctions and Interpol notices overlap — a common pattern for clients from Russia, Central Asia, and the Middle East who are based in Latin America.

We have represented clients from Argentina, Chile, Mexico, Colombia, and across the wider region in OFAC proceedings. Our team includes lawyers qualified in multiple jurisdictions, with deep understanding of US sanctions law, the OFAC reconsideration process, and the interaction between US sanctions and domestic Latin American legal systems. All client communications are handled in strict confidence, and we do not disclose client identities to third parties.

Our fees are transparent and agreed in advance. For OFAC matters, we offer an initial case assessment at no cost, followed by a fixed-fee engagement for the petition or licence application. We understand that designation often results in severe financial strain, and we work to find workable fee arrangements for clients in need. Our phone line (+357 96 447475) is available for confidential enquiries in English, Spanish, and Russian.

Can OFAC designate me if I am not a US citizen?
Yes. OFAC can designate any individual or entity, regardless of nationality, if they meet the criteria for a particular sanctions programme. Secondary designation — targeting non-US persons who deal with SDN-listed entities — is particularly relevant for Argentine and Chilean business people.

Will my Argentine bank freeze my account if I am on the SDN List?
Argentine banks with US dollar correspondent banking relationships are required by their US correspondent banks to screen against the SDN List. Accounts used to process USD payments may be frozen or closed. Argentine banks may also act voluntarily to avoid US sanctions risk, even for peso accounts.

How long does OFAC reconsideration take?
Timelines vary significantly. Simple cases of mistaken identity may be resolved in weeks. Complex cases involving allegations of criminal conduct can take 12–24 months. Maintaining legal representation throughout the process and keeping OFAC updated with new evidence is important.

Can I travel freely if I am on the SDN List?
OFAC designation does not, by itself, prevent travel. However, designation often coincides with Interpol notices or domestic arrest warrants, which do restrict movement. We address all travel-restricting legal instruments — OFAC, Interpol, and domestic warrants — as a coordinated matter.

What is the difference between OFAC delisting and a licence?
Delisting means OFAC removes you from the SDN List permanently, restoring your ability to transact normally. A licence is permission to engage in a specific transaction while remaining on the SDN List. The appropriate remedy depends on the circumstances: if the designation is wrong, we pursue delisting; if you need to transact for a specific purpose while the challenge proceeds, we apply for a licence.