Sanctions law is one of the most technically demanding and high-risk areas of modern legal practice. In recent years, enforcement actions by the U.S. Office of Foreign Assets Control (OFAC) have intensified, affecting companies, financial institutions, and individuals around the world. Whether a business seeks to operate within sanctioned jurisdictions or respond to government inquiries, the role of a sanctions lawyer is central to ensuring compliance and defense.
This article explains the critical functions of sanctions lawyers—especially those focused on OFAC—and why their expertise is essential in today’s regulatory climate.
The Legal Foundation: Understanding OFAC and Its Scope
OFAC, a division of the U.S. Department of the Treasury, administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals. These sanctions target countries, entities, individuals, and sectors. OFAC’s authority extends globally through the principle of extraterritoriality—anyone interacting with U.S. persons, currency, or systems may be subject to its rules.
Unlike traditional legal issues, OFAC matters often arise from routine transactions: sending payments, supplying goods, or even providing services across borders. What seems like a simple business deal may be viewed as a violation under sanctions law.
Sanctions regimes change frequently and are politically sensitive. One update to the Specially Designated Nationals (SDN) list can affect hundreds of business relationships. That’s why ongoing legal guidance is crucial.
Key Roles of a Sanctions Lawyer
Sanctions lawyers are responsible for a wide range of tasks that go far beyond traditional legal counsel. They interpret sanctions laws and regulatory updates, assess the risks of cross-border operations, and help businesses understand how to avoid violations. Part of their work involves drafting internal compliance programs, training staff, and ensuring that corporate policies align with current legal requirements.
They also handle license applications to OFAC for activities that would otherwise be prohibited, assist with voluntary self-disclosures in case of potential violations, and represent clients in enforcement actions or settlement negotiations with regulatory bodies.
Legal professionals in this field must go beyond courtroom skills. They need to monitor international developments, anticipate regulatory changes, and maintain ongoing communication with agencies like the U.S. Treasury. For instance, if a U.S.-based company plans to engage in humanitarian trade with Iran, a knowledgeable OFAC sanctions lawyer will prepare the necessary documentation, clearly justify the legal grounds, and ensure the transaction fully complies with current sanctions regulations.
The Two Pillars: Compliance and Defense
Sanctions lawyers operate within two primary domains—compliance and defense. Both are essential, and each requires a distinct legal approach, combining regulatory insight with strategic execution.
Compliance is the preventive side of sanctions law. A lawyer’s goal is to help the client avoid violations before they happen. This involves conducting detailed risk assessments, ensuring that all business partners and counterparties are screened against relevant sanctions lists, and establishing internal controls that align with OFAC guidelines. A strong compliance program also includes training staff, implementing real-time transaction monitoring systems, and drafting internal policies that reflect current legal requirements.
Effective compliance provides multiple advantages. It significantly reduces the risk of enforcement action by demonstrating that a company has taken reasonable steps to follow the law. If a violation does occur, a solid compliance framework can be grounds for reduced penalties. More importantly, it enables companies to operate confidently in complex international environments where sanctions exposure is high and rules shift frequently.
Defense comes into play when a violation is suspected or alleged. This may start with an administrative subpoena from OFAC, a request for documentation, or a formal notice of potential enforcement. In more serious cases, matters may escalate to the U.S. Department of Justice, opening the door to criminal liability. At this stage, the sanctions lawyer takes on a different role—developing a legal response, managing internal investigations, and advising the client on whether to file a voluntary self-disclosure.
A well-prepared legal defense might include a detailed internal audit of all relevant transactions, a timeline of communications, and correspondence with OFAC explaining the legal basis of the client’s actions. The lawyer may also negotiate with OFAC officials to reduce or avoid penalties or challenge the enforcement action entirely. In cases involving asset freezes or wrongful designation on a sanctions list, litigation may be necessary to remove the client from the list or recover blocked funds.
Whether working to prevent violations or defend against accusations, sanctions lawyers must be precise, proactive, and deeply familiar with the evolving legal landscape. Their ability to combine compliance planning with aggressive defense strategy is what makes them indispensable in high-stakes, sanctions-related matters.
Why Legal Expertise Is Essential
Sanctions law is not intuitive. Terms like “facilitation,” “ownership and control,” or “secondary sanctions” have specific legal definitions. Misinterpreting them can expose clients to serious liability.
The stakes are high: OFAC penalties can exceed $300,000 per violation or twice the value of the transaction, whichever is greater. In some cases, criminal charges are brought by the U.S. Department of Justice, leading to imprisonment.
Alt: Legal expertise
Only a skilled sanctions lawyer with experience in OFAC matters can:
- Navigate overlapping U.S., EU, and UK sanctions rules
- Engage in direct communication with OFAC for license or enforcement issues
- Present legally sound arguments in both administrative and judicial forums
- Minimize damage to a client’s reputation and operations
Legal Insight as a Strategic Advantage
The modern sanctions regime is not static. It evolves quickly with geopolitical events—requiring legal professionals to stay ahead of the curve. Whether it’s helping businesses stay compliant or defending individuals under investigation, OFAC sanctions lawyers play an indispensable role.
Their ability to balance legal interpretation, regulatory negotiation, and strategic defense makes them a vital asset in today’s high-risk international environment. Don’t wait for enforcement to act—engage a sanctions lawyer early to secure your business and legal future.
