The Importance of OFAC Licenses in the Process of EB-5 Petitions

“OFAC”, also known as The Office of Foreign Assets Control, is essentially a federal agency that allows activity that would be restricted by OFAC trade sanction enforcement. By issuing specific licenses based on specific activities, these activities are no longer prohibited.

Regulations of OFAC impose restrictions on the legally sourced funds of EB-5 investors, these funds are created through various institutions in different countries- otherwise if the company that has been acquired through funds of investment is on the SDN list, then it is also valid. The United States Citizenship and Immigration Services, also known as “USCIS” is well-aware of OFAC regulations and may issue denials to those who have not obtained licenses because their funds would not be lawfully sourced and proven.

  • OFAC Sanction Licenses:

There are two distinct kinds of licenses, general and specific licensees. It is vital to note that general licenses do not override the SDN list, if an EB-5 investor funds are invested in a company that is on the SDN list then in most cases they are restricted from making any EB-5 investments unless they obtain a specific license in order to transfer funds from OFAC. However, if it not possible then they will be unable to make any EB-5 investments. Criminal charges and civil penalties may result as punishment if any U.S. person helps a sanctioned person with an illegal transfer of funds.

  • Consequences for Violation of OFAC Sanction

This may result in criminal fines ranging approximately from $50,000 to $10,000,000 or civil penalties ranging approximately from $11,000 to $1,000,000. This may also result in imprisonment for the individual for approximately 10 to 30 years, along with an EB-5 petition denial for the investor.

If an individual or business believes they may possibly be violating an OFAC sanction—either intentionally or by accident— or if you believe that this new OFAC general license will affect your business, it is best to seek legal counsel.

It is advisable to seek legal guidance from our office today as we strive to help guide you with your specific case. 

Attorney Ramona Kennedy cares about your case and will fight for you.

You can contact attorney Ramona Kennedy Law Offices (Kennedy Law LC) for an initial consultation and case evaluation. The first consultation is free of charge. 

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