OFAC Sanctions Lawyer — Spain, Chile & Latin America

OFAC Sanctions and Spanish-Speaking Clients: What You Need to Know

The US Office of Foreign Assets Control (OFAC) administers and enforces economic and trade sanctions based on US foreign policy and national security goals. OFAC designations — placement on the Specially Designated Nationals (SDN) list — block all US persons from conducting transactions with the designated individual or entity, freeze all US-based assets, and effectively cut off access to the global dollar-denominated financial system.

For individuals and companies based in Spain, Chile, Argentina, Colombia, and across Latin America, OFAC designations carry devastating consequences even without direct US connections. International banks, payment processors, and financial institutions routinely screen against the SDN list — an OFAC designation can result in frozen bank accounts, cancelled correspondent banking relationships, and blocked business dealings anywhere in the world.

Who Gets Designated by OFAC in Spanish-Speaking Countries?

OFAC designates individuals across multiple programmes that affect Spanish-speaking clients:

Parallel Strategies: OFAC and Interpol

Many of our clients facing OFAC designations also face Interpol Red Notices or national-level criminal investigations. These two systems — US Treasury sanctions and international criminal police cooperation — increasingly operate in parallel: a US criminal investigation generates both an Interpol notice and an OFAC designation simultaneously.

Our team handles both tracks. We file CCF challenges at Interpol while simultaneously pursuing OFAC reconsideration or SDNTK delisting. Coordinating these parallel proceedings — managing timelines, evidence disclosure, and the interaction between the two processes — is a specialist skill that general practitioners often lack.

For Spanish-speaking clients in Spain, Chile, Argentina, Colombia, or Mexico, we provide full-service defence across both Interpol and OFAC proceedings, with legal advice available in Spanish. Contact us at +357 96 447475 or via our contact form.

The OFAC Delisting Process: What to Expect

Removing a name from the OFAC SDN List is a formal legal process governed by 31 CFR Part 501. The two main routes are administrative reconsideration and delisting petition. Our lawyers prepare and submit these applications on behalf of Spanish-speaking clients across Spain, Chile, Mexico, Colombia, and Argentina:

• Administrative reconsideration: Filed directly with OFAC, this challenges the designation on factual or legal grounds — arguing that the designating evidence is inaccurate, that circumstances have materially changed, or that the designation criteria were never satisfied. OFAC must respond within a reasonable time, and our lawyers follow up aggressively to keep the process moving.
• Delisting petition: A formal petition requesting removal from the SDN list, typically after reconsideration or as a standalone submission where new evidence has emerged. We prepare comprehensive petitions with supporting declarations, documentary evidence, and expert analysis.
• OFAC licence applications: While delisting proceedings are ongoing, OFAC specific licences can authorise otherwise-blocked transactions — for example, to allow a company to continue operating, pay legal fees, or access frozen assets for living expenses. We file licence applications in parallel with delisting proceedings.
• Judicial review: Where OFAC refuses to delist without adequate justification, US federal courts provide a review mechanism under the Administrative Procedure Act. Our US-qualified legal partners handle federal court proceedings.

For Spanish-speaking clients, we provide all written communications in Spanish and ensure full understanding of the US regulatory framework. Consultations are available in Spanish, English, and Russian: +357 96 447475.

Consequences of an OFAC Designation for Individuals in Spain and Latin America

An OFAC SDN designation does not require any US court judgment or criminal conviction. It is an executive action by the US Treasury, and its consequences extend far beyond US borders:

• Bank account freezes: Major Spanish, Chilean, and Latin American banks screen against the SDN list. Designated individuals typically find accounts frozen within days of designation, regardless of whether the funds have any US connection.
• Business collapse: Companies linked to a designated individual — through ownership, directorship, or even contractual relationships — face being blocked by their own banks and suppliers, often without notice.
• Real estate and asset freezes: Any US-person (individual or entity) is prohibited from dealing with SDN-listed parties. Since most major property transactions involve US-linked financial institutions or title insurers, real estate transactions can be blocked even outside the US.
• Travel restrictions: Many countries that do not have extradition treaties with the US nevertheless honour OFAC designation information in visa and entry decisions. An OFAC designation combined with an Interpol notice — a common combination — creates near-total international travel restrictions.
• Reputational damage: SDN list designations are public and permanently indexed by search engines. The reputational consequences for individuals, families, and businesses are severe and lasting even after removal.

Acting quickly is essential. The first 60 days after designation are the most critical window for a legal challenge. Contact our team immediately at +357 96 447475 if you or a family member has been designated by OFAC.

Frequently Asked Questions

Can I challenge an OFAC designation if the underlying evidence is classified or not disclosed to me?

Yes, but the process is challenging. OFAC frequently relies on classified intelligence that is not shared with designated persons. Your petition must anticipate and rebut the likely evidentiary basis using publicly available information, corporate records, and sworn declarations. In some cases, counsel can request that OFAC conduct an internal review of classified materials against exculpatory evidence you provide. US courts have ruled in cases like Holy Land Foundation that due process concerns exist, but judicial review of OFAC decisions remains highly deferential. Building a comprehensive administrative record is critical because litigation options are limited.

If I am delisted by OFAC, will Spanish banks automatically restore my accounts?

Not automatically. Spanish banks conduct independent compliance assessments and may maintain internal restrictions even after OFAC delisting. You will need to provide the official delisting notice from the Federal Register, updated due diligence documentation, and potentially a legal opinion confirming your status. Banks often require 30–90 days to complete internal reviews before restoring services. If the bank’s correspondent relationships were affected or reputational concerns remain, they may decline to resume the relationship entirely. Proactive engagement with the bank’s compliance department, supported by legal counsel, significantly improves restoration outcomes.

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.

Can OFAC designate me based solely on my family relationship to a sanctioned person?

OFAC can designate individuals who provide material support to or act on behalf of sanctioned persons, but family relationship alone is generally insufficient. However, if OFAC believes you hold assets for a designated family member, manage their businesses, or facilitate sanctions evasion, derivative designation is possible under Executive Order criteria. Shared corporate directorships, joint property ownership, or financial transfers with sanctioned relatives increase designation risk substantially. A delisting petition must demonstrate independent economic activity, separate asset ownership, and absence of coordinated conduct. Documenting financial independence through audited records strengthens the defence.

How does an OFAC designation affect my ability to hold or transfer real estate in Spain?

Spanish notaries and property registrars do not directly enforce OFAC sanctions, but practical obstacles arise immediately. Spanish banks will refuse to process purchase funds or mortgage payments involving designated persons. Title insurance companies with US affiliations will decline coverage. Buyers and their legal counsel routinely screen sellers against OFAC lists, making sales nearly impossible without delisting or a specific licence. You retain legal ownership of existing property, but transferring, mortgaging, or selling becomes functionally blocked. An OFAC specific licence can authorise discrete real estate transactions while delisting proceedings continue.