Protecting UAE and international businesses from US Treasury sanctions enforcement. Dr. Shaun Gregory Morgan provides senior-partner OFAC counsel from Emirates Towers, Dubai.
The Office of Foreign Assets Control (OFAC) is a financial intelligence and enforcement agency of the US Treasury Department. OFAC administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries, regimes, terrorists, international narcotics traffickers, and those engaged in activities related to the proliferation of weapons of mass destruction. For businesses operating in the UAE and broader MENA region, OFAC compliance has become one of the most critical legal disciplines of the 21st century.
What many UAE-based businesses fail to appreciate is that OFAC's reach extends far beyond US borders. Through a combination of primary sanctions — which apply to US persons and entities — and secondary sanctions, which can apply to non-US persons who facilitate transactions with sanctioned parties, OFAC has the legal authority to penalize UAE companies, banks, and individuals for conduct that never touches US soil. This extraterritorial reach makes OFAC compliance an urgent priority for any UAE business with US dollar transactions, US correspondent banking relationships, or ties to US persons or entities.
Dr. Shaun Gregory Morgan is the CEO and Managing Partner of Franklin Morgan Law. He holds an LLM from Northwestern University School of Law and an MSc in Economics from the London School of Economics (LSE, 2000), and is admitted to the New York State Bar (No. 1210887). With over 20 years of practice, Dr. Morgan has handled more than 200 OFAC matters for UAE-based financial institutions, trading companies, private equity funds, and multinational corporations — achieving $0 in civil monetary penalties for clients and securing more than 15 OFAC-specific licenses. His deep knowledge of Treasury's enforcement priorities and decision-making processes gives clients an unmatched strategic advantage.
Comprehensive OFAC and US sanctions counsel for UAE and international clients — from compliance program design to enforcement defense.
We design, implement, and test comprehensive OFAC compliance programs tailored to your business model, risk profile, and industry. From SDN screening protocols to customer due diligence frameworks, we build programs that satisfy OFAC's compliance commitment requirements and withstand regulatory scrutiny.
When your business requires authorization to engage in otherwise prohibited activity, we prepare and submit specific and general license applications with compelling legal arguments, factual records, and targeted advocacy. Our track record includes more than 15 approved OFAC licenses across Iran, Russia, and counter-terrorism program categories.
If you receive an OFAC subpoena, notice of investigation, or pre-penalty notice, our enforcement defense team responds strategically. We've achieved $0 in civil penalties across 200+ OFAC matters — leveraging voluntary self-disclosure, cooperation credit, and comprehensive remediation programs to minimize exposure.
A well-crafted voluntary self-disclosure can dramatically reduce OFAC civil penalties — sometimes to zero. We conduct privileged internal investigations, identify the scope of potential violations, prepare comprehensive VSD submissions, and manage all aspects of the regulatory dialogue to maximize the benefits of early cooperation.
We help businesses design and implement robust SDN list screening processes — including vendor selection, screening frequency protocols, false-positive management, and escalation procedures. We also advise on list-based and non-list-based sanctions exposure in specific transactions and counterparty relationships across the GCC and MENA.
Cross-border M&A transactions involving UAE or MENA targets present complex OFAC risks — from counterparty SDN exposure to sectoral sanctions in target industries. We conduct bespoke OFAC due diligence reviews, advise on structuring to manage identified risks, and draft appropriate representations, warranties, and indemnities in transaction documents.
Understanding which OFAC sanctions programs apply to your business is the first step to effective compliance. Below is an overview of the programs most relevant to UAE-based companies.
| Sanctions Program | Regulatory Authority | Key Prohibitions | UAE Exposure Level |
|---|---|---|---|
| Iran (ITSR) | 31 CFR Part 560 | Comprehensive ban on trade, financial dealings, services involving Iran or Iranian persons | ⬛ Critical |
| Russia (CAATSA / EO) | Executive Orders 13661, 14024 | Sectoral sanctions on finance, energy, defense; SDN designations of 1,600+ parties | ⬛ Critical |
| Syria | 31 CFR Part 542 / EO 13894 | Comprehensive ban on services and trade; blocking of Government of Syria property | ▪ High |
| North Korea (DPRK) | 31 CFR Part 510 / EO 13810 | Comprehensive ban; secondary sanctions on third-country financial institutions | ▪ Medium |
| Counter-Terrorism (SDGT) | EO 13224 / 31 CFR Part 594 | Blocking property of SDN-designated terrorist entities and supporters | ▪ High |
| Counter-Narcotics (SDNTK) | EO 12978 / 31 CFR Part 598 | Blocking property of narcotics traffickers; secondary sanctions exposure | ▪ Medium |
Understanding each stage of an OFAC enforcement action allows you to respond strategically. Dr. Morgan's team guides clients through every step.
OFAC opens an investigation following a suspicious transaction report, referral from another agency, or detection of apparent violations in financial data. Early legal representation at this stage is critical to shaping the trajectory of the case.
OFAC issues a formal Request for Information (RFI) seeking detailed records, transaction data, and explanations. Our team prepares comprehensive, legally privileged responses that provide required information while protecting your rights and minimizing further exposure.
If OFAC determines violations occurred, it issues a Pre-Penalty Notice (PPN) with a proposed civil monetary penalty. We prepare a detailed written response challenging the PPN, presenting mitigating factors, and negotiating a substantially reduced settlement.
Most OFAC enforcement matters are resolved by settlement — often for a fraction of the proposed PPN amount when effectively defended. We negotiate settlement agreements that minimize financial exposure and include comprehensive remediation commitments acceptable to OFAC.
Yes. OFAC can impose civil and criminal penalties on UAE companies through secondary sanctions provisions. Even without any US nexus, UAE businesses that facilitate transactions with SDN-designated parties or violate OFAC regulations can face civil monetary penalties of up to $1.4 million per violation, and in severe cases, SDN designation themselves — effectively cutting them off from the US financial system.
An OFAC specific license is a written authorization from OFAC that permits a particular transaction or category of transactions that would otherwise be prohibited under US sanctions. Specific licenses are granted on a case-by-case basis and typically require a detailed application demonstrating legal eligibility and policy justification. Common examples include wind-down licenses, humanitarian licenses, and licenses for pre-existing contractual obligations.
The Specially Designated Nationals (SDN) List is OFAC's primary sanctions list. It contains the names of individuals, companies, vessels, and organizations with whom US persons (and non-US persons in secondary sanctions contexts) are prohibited from doing business. Property and interests of SDN-listed parties within US jurisdiction must be blocked. The SDN list currently contains over 12,000 entries across all OFAC sanctions programs.
OFAC enforcement timelines vary significantly by case complexity. Simple apparent violations resolved by voluntary self-disclosure may be closed within 6-12 months. Complex enforcement actions involving multiple violations, large financial institutions, or novel legal issues can take 2-4 years from initial investigation to final settlement. Early engagement of experienced OFAC counsel — like Dr. Shaun Gregory Morgan — consistently shortens timelines and improves outcomes.
Voluntary self-disclosure (VSD) is the proactive reporting of apparent OFAC violations before OFAC discovers them independently. OFAC's enforcement guidelines treat VSD as a significant mitigating factor — it can reduce the base civil penalty by 50% and in many cases results in no monetary penalty at all, particularly when paired with a comprehensive remediation program. Whether to self-disclose is a complex strategic decision that should be made only after privileged legal review by an experienced OFAC lawyer.
Whether you face an OFAC investigation, need to build a compliance program, or require a specific license — Dr. Shaun Gregory Morgan provides senior-partner counsel from the first call. 200+ OFAC matters. $0 in client penalties. Available 24/7 for urgent matters.
