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Pre-Designation Requests: The Easiest Way To Stay off the OFAC List

This webinar will cover the mitigation of sanctions risk by undertaking proactive action to prevent a sanctions designation before it happens. While parties are quite adept at identifying sanctions risk and avoiding it or minimizing it, non-U.S. persons are often not as skilled in communicating such elimination or reduction of sanctions risk. This webinar will discuss both public facing actions that can be taken to reduce the likelihood of sanctions investigations, and how to communicate with U.S. federal agencies to prevent a sanctions designation.

Topics covered include:

Business Law Banking & Finance

Agenda:

Introduction

Identifies the consequences of being sanctioned and introduces the concept of pre-designation requests as an emerging frontier in sanctions practice

Legal Landscape

OFAC's designation authority and immediate consequences
Traditional post-designation remedies (31 CFR 501.807)
Administrative Procedure Act framework

Making the Request

When to submit (recognizing designation signals)
Form and content (legal memo, facts, evidence, remedial measures)
Key legal arguments (APA, error, changed circumstances)
Timing and delivery methods

Procedural & Strategic Considerations

OFAC's internal processes
Alternatives like requesting meetings
Balancing transparency vs. privilege
Litigation options under the APA
Coordination with other jurisdictions

Case Studies & Practice Tips

Analysis of when pre-designation engagement has worked
Analysis of when pre-designation engagement has failed
Public facing remediation

Conclusion and Q&A

Duration of this webinar: 60 minutes

Originally broadcast: March 3, 2026 11:00 AM PT

Webinar Highlights

This webinar is divided into section summaries, which you can scan for key points and then dive into the sections that interest you the most.

00:00 Introduction

Erich Ferrari, the speaker, discusses the severe consequences of being placed on the OFAC SDN list, including frozen assets and reputational damage. He explains the traditional remedy of filing a petition for administrative reconsideration, which can take years to resolve. Erich introduces the concept of pre-designation requests as a proactive measure to prevent being listed on the SDN list. Pre-designation requests aim to present information to OFAC before a designation occurs. Erich explains that pre-designation requests are not well-established but draw on principles of administrative law and due process.

16:53 Indicators and Preparation for Pre-Designation Requests

Indicators of potential designation include requests for information, media reports, NGO reports, and foreign sanctions. Cross-border payments being blocked can signal an ongoing sanctions investigation. Congressional pressure and visa bans can also indicate potential designation. Requests should include a formal memorandum to OFAC, stating the basis for the belief of an investigation. The request should articulate why the designation is unwarranted and possibly propose remedial measures.

29:53 Supporting Evidence and Strategies

Requests should include supporting evidence such as corporate records and financial documents. OFAC prefers well-organized submissions with numbered exhibits and cross-references. Remedial measures should demonstrate a commitment to compliance. Divestiture and distancing from sanctioned persons are important strategies. Ongoing certifications of compliance can reinforce the request's credibility. Legal arguments should be framed to influence OFAC's legal review and demonstrate standing.

40:25 Timing and Delivery of Requests

Timing and delivery of requests depend on the level of adverse reporting and potential designation indicators. Short-form requests can be submitted initially, followed by detailed long-form requests. Requests should be sent to OFAC or the State Department, with confirmation of receipt expected. Filing a request does not guarantee a delay or stop of designation, but it creates a record for judicial review. The request demonstrates transparency and good faith, potentially influencing OFAC's decision-making.

Please note this AI-generated summary provides a general overview of the webinar but may not capture all details, nuances, or the exact words of the speaker. For complete accuracy, please refer to the original webinar recording.

Speaker

Erich Ferrari Managing Shareholder
Ferrari & Associates

As the Founder and Managing Shareholder of Ferrari & Associates, Mr. Ferrari represents U.S. and foreign corporations, financial institutions, exporters, insurers, as well as private individuals in trade compliance, regulatory licensing matters, and federal investigations and prosecutions. He frequently represents clients before the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC), the United States Department of Commerce’s Bureau of Industry and Security (BIS), and in federal courts around the country. With over 17 years of experience in national security law, exports control, and U.S. economic sanctions, he counsels across industry sectors representing parties in a wide range of matters from ensuring compliance to defending against federal prosecutions and pursuing federal appeals. Read More ›