Consultation

OFAC Sanctions for Exporters and Manufacturers

What should exporters and manufacturers check for OFAC sanctions risk?

Review the buyer, distributor, end customer, freight intermediaries, shipment route and payment parties. Verify ownership where the facts raise a concern, because OFAC's 50 Percent Rule can apply to an entity that does not appear by name on a sanctions list. Document the review and resolve material discrepancies before shipping or accepting payment.

OFAC Framework for Compliance Commitments · OFAC FAQ on ownership and the 50 Percent Rule

Sanctions risk can arise before an order ships, when a distributor, end customer, freight intermediary or payment party changes. Friling Law helps exporters and manufacturers assess the sanctions implications of these changes and coordinate that review with export-control counsel where the EAR also applies.

What to review before a shipment or payment

  • Identify the buyer, end customer, beneficial owners, intermediaries, destination and parties moving the goods or money.
  • Compare the purchase order, shipping instructions and payment information. Investigate unexplained substitutions or routing changes before approving the transaction.
  • Document how staff escalate a potential match, a bank hold or an unexpected change, and who can authorize the next step.

When sanctions and export controls overlap

OFAC sanctions and the Export Administration Regulations can apply to the same transaction. Review each framework on its own terms, including which parties, activities and items it covers and whether any authorization is needed.

Explore our OFAC compliance service, BIS and EAR counsel and export law and compliance service.

Related matter and guidance

Diana Friling’s attorney profile · Explore the OFAC practice