Worldwide: How Can Individuals Be Removed From U.S. Sanctions List?

1. What is the overarching purpose of the U.S. Economic Sanctions Policy? When can persons be removed from Sanctions List (the "Specially Designated Nationals List" or SDN List)?
The purpose for the U.S. imposing sanctions on an individual or entity is to compel them to change their behaviour. This could include small steps, such as showing that they are no longer involved in an industry or working for a particular government. Or it could include much more extreme steps, such as leaving one's job, moving to another country, adopting verifiable auditing procedures, relinquishing ownership of a company, or otherwise demonstrating that the basis for a sanctions designation no longer applies.

Economic sanctions are distinct from criminal charges because the goal is not to "punish" the sanctioned person, but to compel them to adhere to U.S. policy goals. Moreover, the U.S. government has an administrative process for determining whether individuals or entities should be removed from the SDN List, and considers each case separately based on its merits. Accordingly, if a sanctioned person can show that the basis for their SDN designation no longer applies, they could see their name removed from the U.S. sanctions list, and their life return to normal. Successful cases of U.S. sanctions removal are oftentimes businesspeople that do not or no longer support certain government activities, as well as family members or known contacts that do not or no longer support sanctioned actors.

2. Are law firms allowed to represent SDN clients?
U.S. law firms may legally represent SDN clients in certain instances. The right to legal representation for sanctioned clients is enshrined in the U.S. Constitution. Therefore, the U.S. government cannot prevent you from exercising your right to an attorney. However, U.S. law firms may only engage in certain activities on behalf of a sanctioned person. In general, lawyers may represent any SDN client whose life, liberty, or property are at risk in the U.S., or for legal assistance in being removed from the SDN List, or for U.S. sanctions compliance and other related legal advice.

3. What is the procedure to be removed from the U.S. sanctions list?
The first step for sanctions list removal procedure is to submit a petition for administrative reconsideration to the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC). OFAC is the agency within the Treasury that is responsible for the administration of U.S. economic sanctions. OFAC is also in charge of reviewing petitions for SDN List reconsideration and removal from this list. OFAC petition process typically starts with sending several questionnaires to an SDN to obtain greater information before making a decision. If OFAC does not make a decision in a timely manner—or if OFAC denies the petition— in our experience it can help SDNs to filing or threating with filing a lawsuit in U.S. Court to challenge their SDN designation and increase chances for a removal.

EU

1. Saodat Narzieva
   The Guardian
   Article link
2. Olga Ayziman
   Official Journal of the European Union
   Announcement link
3. Dmitry Ovsyannikov
   EU Court of Justice
   Operative part of the ECJ Decision link
4. Grigory Berezkin
   Reuters
   Article link
5. Alexander Shulgin
   Financial Times
   Article link
6. Georgy Shuvaev (deceased 2022)
   Reuters
   Article link
   

6. What are the benefits of a removal from the SDN list?
The mayor benefit of SDN list removal is that all assets of the former SDN are un-frozen and become free again. The former SDN can dispose of all his assets. Especially bank accounts will be deblocked. In addition, the assets of companies controlled by the former designated person are unfrozen and can be used to conduct business.