What are the best practices for preparing an OFAC license application?

1 What is an OFAC license?

An OFAC license is a written authorization from OFAC that allows a specific transaction or activity that would otherwise be prohibited by U.S. sanctions. There are two types of OFAC licenses: general and specific. A general license is a broad authorization that applies to certain categories of transactions or activities that are published in the OFAC regulations or on the OFAC website. A specific license is a case-by-case authorization that requires an application and review by OFAC. You can find out if your transaction or activity is covered by a general license or requires a specific license by consulting the relevant OFAC sanctions program or contacting OFAC.

2 When to apply for an OFAC license?

You should apply for an OFAC license as soon as possible before engaging in a transaction or activity that may be subject to U.S. sanctions. You should also check the OFAC website regularly for updates on the sanctions programs and the general licenses that may affect your transaction or activity. OFAC may issue new general licenses, amend or revoke existing ones, or impose new sanctions that may impact your eligibility for a license. You should also be aware that obtaining an OFAC license does not exempt you from complying with other U.S. laws and regulations, such as the Export Administration Regulations (EAR) administered by the Bureau of Industry and Security (BIS).

3 How to apply for an OFAC license?

To apply for an OFAC license, you need to submit an application through the online portal called the Licensing Application Submission System (LASS). You will need to create an account and provide information about yourself, your organization, your transaction or activity, and the parties involved. You will also need to upload supporting documents, such as contracts, invoices, letters of intent, or other relevant materials. You should provide as much detail as possible to enable OFAC to evaluate your application and make a decision. You can track the status of your application online and communicate with OFAC through the LASS portal.

4 What are the best practices for preparing an OFAC license application?

Preparing an OFAC license application can be a complex and time-consuming process, but there are some best practices that can help you improve your chances of success. Before applying, make sure to research the sanctions program that applies to your transaction or activity, the criteria and conditions for obtaining a license, and the potential risks and consequences of violating the sanctions. When filling out the application form, use plain language and avoid jargon or technical terms. Provide consistent and accurate information and documents, such as verifying the identity and background of the parties involved. When submitting your application, include all the required information and documents, and respond promptly to any requests or questions from OFAC. Applying for an OFAC license can take several weeks or months, so be prepared to wait for OFAC's decision while being flexible to adapt to any changes or developments in the sanctions environment.