CSS CSS Licensing & Exemptions 2 — Questions and Answers
Question 1: Under which OFAC policy is food, medicine, and medical devices generally authorized for export to comprehensively sanctioned countries?
- Trade Sanctions Reform and Export Enhancement Act (TSRA) of 2000 (Correct answer)
- Foreign Assistance Act exemption
- Export Administration Regulations (EAR) humanitarian clause
- International Emergency Economic Powers Act (IEEPA) food waiver
Correct answer: Trade Sanctions Reform and Export Enhancement Act (TSRA) of 2000
TSRA established a licensing framework allowing the export of food, medicine, and medical devices to Cuba, Iran, Sudan, and Libya, subject to conditions including payment and licensing requirements.
Question 2: A U.S. attorney representing a sanctioned client in ongoing litigation is typically authorized under which OFAC framework?
- There is no authorization; U.S. attorneys cannot represent SDNs
- A specific license must always be obtained before any legal representation
- A general license authorizing legal services related to a blocked person's defense in legal proceedings (Correct answer)
- A Department of Justice waiver
Correct answer: A general license authorizing legal services related to a blocked person's defense in legal proceedings
Most OFAC sanctions programs include a general license permitting U.S. persons to provide legal services to sanctioned parties in connection with ongoing legal proceedings, though receipt of fees may still require a specific license.
Question 3: What is the purpose of OFAC's 'wind-down' general license when a new sanctions designation is issued?
- To allow indefinite continuation of business with newly designated parties
- To provide a limited time period for parties to conclude pre-existing contracts with a newly designated entity (Correct answer)
- To permit U.S. banks to maintain blocked accounts beyond reporting deadlines
- To allow sanctioned parties to settle disputes before asset blocking
Correct answer: To provide a limited time period for parties to conclude pre-existing contracts with a newly designated entity
Wind-down licenses give U.S. persons a limited time (often 30–90 days) to conclude pre-existing contracts or commitments entered before a new designation, reducing disruption to innocent parties.
Question 4: Which OFAC process allows a designated party to formally request removal from the SDN List?
- Petition for Delisting
- Administrative Reconsideration or Delisting Request (Correct answer)
- OFAC Appellate Review
- SDN Removal Application
Correct answer: Administrative Reconsideration or Delisting Request
Designated parties may submit an administrative reconsideration request or delisting petition to OFAC presenting evidence that the designation was incorrect or circumstances have materially changed.
Question 5: A humanitarian organization seeking to deliver food aid to a comprehensively sanctioned country should primarily rely on:
- A verbal authorization from the U.S. Embassy in a third country
- OFAC humanitarian general licenses and/or a specific license for activities not covered by general licenses (Correct answer)
- UN Security Council authorization alone
- An exemption from the State Department's Bureau of Humanitarian Affairs
Correct answer: OFAC humanitarian general licenses and/or a specific license for activities not covered by general licenses
Humanitarian organizations should first analyze applicable OFAC general licenses, and for activities not covered, apply for a specific license — OFAC has a dedicated licensing policy for bona fide humanitarian work.
Question 6: What is an OFAC 'No Action' letter?
- A formal enforcement decision finding no violation
- An informal communication where OFAC indicates it does not intend to take action on a described transaction or activity (Correct answer)
- A denial of a license application
- A declination to prosecute issued by the Department of Justice
Correct answer: An informal communication where OFAC indicates it does not intend to take action on a described transaction or activity
An OFAC No Action letter is an informal guidance communication (not a binding ruling) indicating OFAC does not plan to take action against a specific described activity, often used for novel or edge-case fact patterns.
CSS CSS Licensing & Exemptions 2
Under which OFAC policy is food, medicine, and medical devices generally authorized for export to comprehensively sanctioned countries?