When OFAC stalls or gets it wrong, federal court is the next move.
DC Federal Litigation, led by Sherrod Seward, Esq., brings actions in the U.S. District Court for the District of Columbia under the Administrative Procedure Act to compel the Office of Foreign Assets Control to decide — when a delisting petition or license application has sat unanswered for years. We also handle the full administrative track: SDN List delisting petitions, OFAC licenses, unblocking applications, and compliance. We don’t wait on the agency. We bring the agency to court.
Federal-court APA litigators who force stalled agencies to act. The same statute and the same forum we use to take USCIS to federal court — the Administrative Procedure Act, in the U.S. District Court for the District of Columbia — govern actions to compel OFAC to rule on a petition it has left pending for years.
What an SDN designation actually does to your life and your business.
A listing on OFAC’s Specially Designated Nationals and Blocked Persons List is not a fine you pay and move past. It is a continuing status that reaches every asset, counterparty, and bank account connected to you — and it does not lift on its own.
Your property is blocked
On designation, all property and interests in property within U.S. jurisdiction are frozen. Investment accounts, holdings at U.S.-connected banks and brokerages, and funds moving through the U.S. financial system become inaccessible — often indefinitely.
U.S. persons can’t deal with you
U.S. persons are prohibited from transacting or dealing with a designated party absent an applicable exemption or an OFAC license. In practice, employers, service providers, and counterparties walk away rather than risk their own exposure.
Foreign parties face secondary risk
Under programs like E.O. 14024, foreign persons who engage in certain dealings with a designated party can themselves be exposed to designation. That chilling effect walls a listed person off from the global financial system — not just the U.S. one.
The petition is pending. The agency won’t decide. That is a problem a court can fix.
OFAC’s own regulations give designated parties a path to seek removal — the Petition for Administrative Reconsideration under 31 C.F.R. § 501.807. You argue the basis for the designation is insufficient, that the circumstances behind it no longer apply, or you propose remedial measures. Then you wait.
And wait. It is common for petitions to sit for years — through questionnaires, supplements, and rounds of “your case is receiving active attention” — without a final decision. The harm doesn’t pause while you wait: blocked assets stay frozen, employment stays foreclosed, and basic family finances stay disrupted.
That delay is not just frustrating. Under the APA, an agency must “conclude a matter presented to it” within a reasonable time (5 U.S.C. § 555(b)), and a federal court is empowered to “compel agency action unlawfully withheld or unreasonably delayed” (5 U.S.C. § 706(1)). When OFAC has already said it has no further questions, the case for a court-ordered deadline is at its strongest.
We file in the U.S. District Court for the District of Columbia, where OFAC sits, and ask the court to order a final determination by a date certain. A well-pleaded delay complaint also has a way of moving a file that nothing in the administrative process could.
§ 706(1) — Compel Action
The core claim: agency action unreasonably delayed. The relief is a court-ordered deadline to decide, not damages.
§ 555(b) — Reasonable Time
Agencies must conclude matters presented to them within a reasonable time. Years-long silence is the violation.
D.D.C. — The Right Forum
OFAC and Treasury reside in Washington, D.C. Venue and jurisdiction over these officials sit squarely in the District.
“No Further Questions”
When the agency has closed its inquiry but still hasn’t ruled, the delay is hardest to justify — and the petition is ripe to compel.
The full OFAC track — from petition to federal court.
Litigation is the lever, but it is not the whole job. We represent individuals and entities across the entire lifecycle of an OFAC matter, and we choose the tool that fits the situation rather than selling the same one to everyone.
APA Actions to Compel OFAC to Act
Federal-court complaints when a delisting petition or license application has been unreasonably delayed. We seek a court-ordered deadline for a final determination under 5 U.S.C. § 706(1) and § 555(b).
U.S. District Court, District of ColumbiaSDN List Removal Petitions
Petitions for Administrative Reconsideration under 31 C.F.R. § 501.807 — built around an insufficient basis for the designation, a genuine change in circumstances, or concrete remedial measures, and drafted so they don’t foreclose later steps.
31 C.F.R. § 501.807OFAC License Applications
Specific license applications for transactions that would otherwise be prohibited — wind-downs, legal fees, humanitarian and personal-maintenance transfers, and other authorized dealings — prepared and advocated through to a decision.
Unblocking Applications
Applications to release blocked property where the legal basis supports it, including for parties caught up in a designation indirectly or through mistaken identity, and coordination with banks holding the frozen funds.
Sanctions Compliance Counseling
Risk assessments, screening and diligence programs, and transaction-level guidance for businesses and financial institutions that need to operate confidently without tripping a sanctions wire.
Enforcement Defense & Voluntary Self-Disclosure
Response to administrative subpoenas and OFAC inquiries, and voluntary self-disclosure strategy where a violation has occurred and getting ahead of it is the better path.
Individuals on the list — and the businesses caught in its reach.
Designated Individuals
- People added to the SDN List whose circumstances have materially changed since designation
- Former executives, officers, and directors seeking removal after severing the ties that prompted the listing
- Parties whose delisting petition has stalled at OFAC for a year or more without a final decision
- Individuals facing mistaken-identity or insufficient-basis designations
- Anyone locked out of employment, banking, and basic family finances by a continuing designation
Entities & Institutions
- Companies with blocked transactions or frozen property inside U.S. jurisdiction
- Banks, brokerages, and service providers managing secondary-sanctions and counterparty exposure
- Businesses that need a specific license to complete an otherwise-prohibited transaction or wind-down
- Foreign firms navigating E.O. 14024 and other program exposure
- Organizations building or repairing a sanctions compliance program after an inquiry
Escalate first. Litigate when that’s what it takes.
Assess & Position
We review the designation, the petition record, and the agency’s communications to find the strongest available argument — insufficient basis, changed circumstances, remedial measures, or an unreasonable-delay posture — and the right tool to deploy.
Press the Agency
We engage and escalate at OFAC — through counsel, the assigned investigator, and agency leadership — documenting the delay and the absence of any outstanding requests, and giving the agency a clear opportunity to act before court.
File in Federal Court
When the record shows action unreasonably withheld, we file in the U.S. District Court for the District of Columbia and ask the court to compel a final determination by a date certain — and we litigate it through to that order.
Straight answers on suing OFAC and getting off the list.
Can you sue OFAC if it won’t decide your delisting petition?
Yes. The Administrative Procedure Act requires agencies to conclude matters within a reasonable time (5 U.S.C. § 555(b)) and authorizes federal courts to compel agency action unreasonably delayed (5 U.S.C. § 706(1)). When a Petition for Administrative Reconsideration has been pending for years with no decision, a listed party can file in the U.S. District Court for the District of Columbia and ask the court to order OFAC to issue a final determination by a date certain.
How long can OFAC take to decide a delisting petition?
There is no fixed deadline. In practice, petitions under 31 C.F.R. § 501.807 often stay pending for one to three years or longer, through multiple questionnaires and supplements. A delay of well over a year with no justification — especially after OFAC has said it has no further questions — can be challenged in federal court as unreasonable delay.
What’s the difference between a delisting petition and suing OFAC?
A delisting petition is the administrative request filed directly with OFAC under 31 C.F.R. § 501.807 seeking removal from the SDN List. Suing OFAC is a federal court action under the APA — either to compel OFAC to act on a petition it has unreasonably delayed, or to set aside a denial as arbitrary and capricious. They work together: the petition opens the process; litigation is the lever when OFAC stalls or gets it wrong.
Can a business get blocked assets released or an OFAC license?
Yes. Entities with frozen property in U.S. jurisdiction can file an unblocking application where the legal basis supports release, and businesses can apply for a specific OFAC license to complete otherwise-prohibited transactions — wind-downs, legal fees, and authorized transfers. Where OFAC unreasonably delays or improperly denies a license or unblocking request, that action is also reviewable in federal court under the APA.
Where are OFAC sanctions lawsuits filed?
OFAC and the U.S. Department of the Treasury are in Washington, D.C., so these actions are most commonly filed in the U.S. District Court for the District of Columbia, where venue and jurisdiction over the agency and its officials are proper — the court this firm is built around.
$500. Credits 100% toward your retainer.
Sixty minutes with Sherrod Seward, Esq. We assess your OFAC matter — a stalled delisting petition, a blocked transaction, a license you need, or a designation that no longer fits the facts — and tell you honestly whether federal court is the right move. If we engage on the merits, the consultation fee credits in full toward the engagement retainer.
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