OFAC Sanctions Lawyer — Spain, Chile & Latin America

The Office of Foreign Assets Control (OFAC) is the United States Treasury’s principal sanctions enforcement authority. Despite being a US federal agency, OFAC exercises far-reaching extraterritorial jurisdiction: any transaction denominated in US dollars, routed through US correspondent banks, or involving US persons is subject to OFAC oversight — regardless of whether the parties involved are located in Madrid, Barcelona, Santiago de Chile, or Mexico City.

Spain’s position as a major EU economy with deep transatlantic business and financial ties places Spanish residents and businesses at significant OFAC risk. Spanish companies engaged in trade with sanctioned countries, business people with Russian, Iranian, Venezuelan, or North Korean counterparts, and individuals whose assets pass through US dollar clearing systems may all find themselves facing OFAC scrutiny. The EU itself maintains a parallel sanctions framework — enforced by the Spanish Treasury and SEPBLAC, Spain’s financial intelligence unit — that closely mirrors and in some respects exceeds OFAC restrictions.

For Spanish residents, an OFAC designation on the Specially Designated Nationals (SDN) List has severe practical consequences: Spanish banks with US correspondent relationships will block USD transactions; major international financial institutions operating in Spain — Santander, BBVA, CaixaBank — carry out automated SDN screening and may restrict or close accounts; cross-border asset transfers are effectively frozen. The reputational damage alone can be catastrophic for individuals in professional or business life.

Specialist legal intervention is not optional — it is essential. Intercollegium’s OFAC team advises clients across Spain and the broader Spanish-speaking world on sanctions compliance, SDN delisting petitions, specific licence applications, and coordinated Interpol notice removal where both instruments are deployed against the same individual.

Intercollegium’s OFAC practice covers the full range of sanctions defence work. Our approach begins with a rigorous review of the administrative record underpinning the designation: we obtain the unclassified record through FOIA requests, identify the specific sanctions programme involved (SDN, Global Magnitsky, Kingpin Act, CAATSA, OFAC-Russia), and assess whether the factual and legal basis for designation meets the required standard.

Where the designation rests on mistaken identity, stale evidence, or factual error, we submit a formal petition for reconsideration to OFAC’s Office of Global Targeting. This submission marshals all available evidence — corporate records, financial statements, travel documentation, sworn declarations, and expert reports — to demonstrate either that the criteria for designation were never met or that circumstances have materially changed. Our team has experience across a wide range of OFAC programmes and understands the evidentiary standards OFAC applies in reconsideration proceedings.

Where judicial review is available, we coordinate with US-based co-counsel to file proceedings in the appropriate federal court. Spanish clients benefit from the EU’s blocking statute (EC Regulation 2271/96), which prohibits compliance with certain US secondary sanctions provisions; we advise on how to leverage this protection in combination with direct OFAC engagement.

For clients who need to resume commercial or personal transactions while a delisting petition proceeds, we apply for specific licences authorising the proposed activity. Licences are commonly sought for: payment of legal fees, access to blocked wages or pensions, completion of pre-designation contracts, and humanitarian transactions. We prepare detailed, evidence-supported applications designed to meet OFAC’s licensing criteria.

OFAC designations affecting Spanish-speaking Latin America follow distinct patterns. In Chile, sanctions exposure most commonly arises in connection with mining and resource extraction companies with US investors, financial institutions processing USD cross-border payments, and individuals subject to Kingpin Act designations linked to drug trafficking allegations. Chile’s Unidad de Análisis Financiero (UAF) publishes a consolidated list that largely mirrors the OFAC SDN List, meaning a US designation rapidly triggers domestic Chilean consequences as well.

Mexico is one of the countries most heavily affected by OFAC sanctions in the Spanish-speaking world. The Kingpin Act has resulted in extensive SDN designations of Mexican nationals, their family members, and associated businesses. Individuals designated under the Kingpin Act — often on the basis of alleged business relationships rather than direct trafficking activity — face asset freezes, banking exclusion, and severe travel restrictions. Mexico’s OFAC-designated population is large, and the consequences for families and legitimate businesses caught up in these designations are severe. We have experience navigating the specific evidentiary challenges that Kingpin Act reconsideration cases present.

In Colombia, OFAC exposure frequently arises in connection with narcotics-related programmes (Kingpin, Foreign Narcotics Kingpin), Nicaraguan sanctions, and Global Magnitsky designations targeting alleged corruption. Colombian businesses with US financial counterparties, exporters in the agricultural and energy sectors, and professional service providers with US clients all carry OFAC compliance obligations. Where a designation has been issued, we act promptly to seek reconsideration, pursue available licences, and coordinate the defence with any parallel criminal or extradition proceedings.

A growing number of our Spanish and Latin American clients face both an OFAC designation and an active Interpol Red Notice or Diffusion issued by the country prosecuting them — most commonly Russia, Venezuela, or a Central Asian state. These two legal instruments are distinct but reinforce one another: the OFAC designation restricts financial activity globally, while the Interpol notice restricts freedom of movement.

Intercollegium is uniquely positioned to address both tracks simultaneously. Our OFAC team and Interpol practice work in coordination, ensuring that the strategy pursued before one body does not inadvertently prejudice the defence before the other. In many cases, successfully demonstrating to the CCF (Interpol’s Commission for the Control of Files) that a notice was issued for political reasons also strengthens the argument before OFAC that the underlying designation criteria are not met. We have successfully managed coordinated OFAC and Interpol challenges for clients based in Spain, Mexico, and Colombia.

Where clients also face extradition requests — whether from the issuing country or a third state — we integrate extradition defence into the overall strategy. Spain is party to extradition treaties with a wide range of states, including Russia, and our team advises on extradition risk assessment, preventive measures, and procedural safeguards under Spanish and EU law.

Intercollegium is an international law firm specialising in Interpol, extradition, and US/EU sanctions defence. Our team includes lawyers qualified in Cyprus, the UK, and partner jurisdictions, with extensive experience in OFAC reconsideration proceedings, federal court litigation, and specific licence applications. We advise clients in Spanish, English, Russian, and Arabic, and offer a fully confidential service with no disclosure of client identities to third parties.

Our fees are transparent and agreed in advance. For OFAC matters, we offer a no-cost initial case assessment followed by a fixed-fee or capped engagement for the substantive work. We understand that designation frequently causes severe financial disruption, and we work flexibly to find arrangements that allow the defence to proceed effectively. Our phone line (+357 96 447475) is staffed around the clock for urgent enquiries in Spanish and English.

If you are based in Spain, Chile, Mexico, Colombia, or elsewhere in the Spanish-speaking world and have been designated by OFAC — or fear that designation is imminent — contact us immediately. Early intervention is critical: evidence can be preserved, assets can sometimes be protected pending the challenge, and the administrative record can be reviewed before it becomes entrenched. The longer a designation stands uncontested, the more difficult it becomes to secure removal.

Can OFAC designate a Spanish citizen or company?
Yes. OFAC jurisdiction is not limited to US persons. Any individual, entity, or business — regardless of nationality or location — can be designated if OFAC determines they meet the criteria for a particular sanctions programme. Secondary sanctions can reach Spanish nationals who deal with SDN-listed counterparties.

Does an OFAC designation affect my EU bank accounts?
It depends on the bank and the nature of your accounts. EU banks with US correspondent banking relationships and US operations screen against the OFAC SDN List. Spanish banks such as Santander, BBVA, and CaixaBank all carry out automated screening. USD accounts and international transfers are most at risk; euro accounts may also be affected if the bank elects to apply a conservative compliance approach.

How long does an OFAC reconsideration take?
Simple cases — particularly those based on mistaken identity — can be resolved in a matter of weeks. Complex cases involving substantive sanctions allegations can take 12 to 24 months or more. We work to present the strongest possible submission at the outset to minimise delay.

Can I challenge an OFAC designation in Spanish courts?
OFAC designations are US administrative decisions and cannot be challenged directly in Spanish courts. However, where the designation triggers consequences in Spain (for example, asset freezes by Spanish banks), certain domestic administrative and civil remedies may be available. We advise on all available legal avenues, both in the US and domestically.

What should I do if I discover I am on the OFAC SDN List?
Contact a specialist lawyer immediately. Do not attempt to resolve the matter informally with OFAC, your bank, or third parties without legal advice. Preserve all documentation relating to the transactions or relationships that may have prompted the designation. Act quickly — early legal intervention produces significantly better outcomes.