Episode #376: “I think it’s a big win. And also people may not like to hear this, it’s actually a win for sanctions,” says Erich Ferrari, founder of Ferrari & Associates and a leading U.S. sanctions attorney. In this episode, he explains the legal and procedural framework behind the U.S. Specially Designated Nationals (SDN) list and responds to criticism over his firm’s role in recent delistings of Myanmar-linked clients. 

Ferrari entered sanctions law after 9/11, troubled by the lack of due process in early terrorism-related designations towards Muslim charities. His firm now handles compliance, licensing, and delisting cases, which often take years to be resolved. The SDN list includes individuals, entities, and assets sanctioned under U.S. laws or executive orders for conduct or status deemed harmful to U.S. interests, but not necessarily for any illegal acts. OFAC, within the Treasury Department, manages the list, but designations involve interagency input from bodies such as the State Department, DOJ, and CIA. 

Removal requires proving mistaken designation, changed circumstances, or remediation. Ferrari says arguing OFAC was wrong rarely works; the focus must be on addressing its concerns. Even after delisting, reputational and financial restrictions often persist for years. 

The recent delisting of four Myanmar-linked parties, including Ferrari’s clients, angered Burmese communities and rights advocates. Ferrari stresses that delistings signal sanctions’ effectiveness, not weakness, and are decided by the U.S. government, not lawyers. He distinguishes legal representation from prohibited lobbying and accepts only clients committed to change and truthfulness. 

He closes by urging those at risk to treat allegations seriously and act preemptively to avoid designation.