Best Sanctions & Export Controls Lawyers in New York City

1. About Sanctions & Export Controls Law in New York City, United States

Sanctions and export controls in the United States regulate how goods, technologies, and services can cross borders. In New York City, as a major financial and commercial hub, businesses routinely encounter complex compliance requirements. Federal agencies lead the regulatory framework, while New York City organizations often face enforcement actions and licensing decisions that require precise navigation by a knowledgeable attorney.

The core idea is to prevent information and items from reaching sanctioned destinations or end users, while allowing legitimate trade under proper licenses. Compliance involves screening counterparties, classifying items, and understanding licensing exceptions. NYC firms in tech, finance, education, and manufacturing frequently engage with these rules in cross border transactions, making expert legal counsel essential.

Key components include licensing regimes, blocked person lists, and end-use controls. Violations can carry civil penalties, criminal liability, and significant reputational harm. An experienced sanctions and export controls attorney can help you assess risk, respond to government inquiries, and obtain necessary licenses.

2. Why You May Need a Lawyer

• A New York City tech startup suspects its software may be dual use and requires an export license to export to a foreign distributor. An attorney can conduct a proper classification, determine applicable licensing requirements, and guide you through a license application to minimize delays.

• A Manhattan financial institution discovers funds flowing to a party on OFACs sanctions list. Legal counsel can advise on freeze procedures, fund release options, and potential licenses or mitigation steps to avoid penalties.

• A NYC import company unknowingly sources restricted item components from a foreign supplier. An export controls attorney can help with self disclosure, remediation steps, and implementing a robust screening program to prevent future violations.

• A public university in Queens collaborates with an overseas partner on a research project involving controlled equipment. A lawyer can review ITAR or EAR implications, licensing needs, and compliance training for researchers and staff.

• A New York City exporter receives a government inquiry about an alleged improper re export to a sanctioned country. An attorney can coordinate with agencies, prepare a timely response, and mitigate penalties.

3. Local Laws Overview

In New York City, sanctions and export controls are primarily governed by federal law, but local enforcement, licensing decisions, and business practices are highly relevant to NYC entities. The following named statutes and regulations outline the federal framework that applies in New York City, with notes on jurisdictional application and recent developments.

• Export Administration Regulations (EAR), 15 C.F.R. Parts 730-774 - Regulate dual use and certain military items controlled for export. Administered by the U.S. Department of Commerce, Bureau of Industry and Security (BIS). The Export Control Reform Act (ECRA) of 2018 provides the statutory basis for EAR enforcement and licensing decisions. Enforcement occurs nationwide, including the Southern District of New York (SDNY) and other federal courts in New York City. Source: BIS EAR overview
• International Traffic in Arms Regulations (ITAR), 22 C.F.R. Parts 120-130 - Govern the export and temporary import of defense articles and services. Administered by the U.S. Department of State, Directorate of Defense Trade Controls (DDTC). ITAR imposes licensing and end‑use restrictions that apply to entities in New York City with cross border activities. Source: DDTC ITAR overview
• Office of Foreign Assets Control (OFAC) Sanctions Programs, 31 C.F.R. Part 500 et seq. - Establishes sanctions programs and licensing requirements for transactions involving designated countries, entities, and individuals. OFAC enforcement is federal and nationwide, with NYC businesses subject to penalties for violations. Source: OFAC sanctions overview

As of 2024, OFAC maintains sanctions programs targeting numerous countries and thousands of designated individuals and entities. Compliance requires ongoing screening and careful licensing decisions.

U.S. Department of the Treasury - Office of Foreign Assets Control

EAR and ITAR licensing decisions hinge on item classification and destination end use. Violations can result in civil penalties and criminal charges, underscoring the need for qualified counsel.

U.S. Department of Commerce - Bureau of Industry and Security; U.S. Department of State - Directorate of Defense Trade Controls

Recent changes in enforcement and licensing trends have included expansions in OFAC designations and tightened EAR export controls on certain dual use items. NYC businesses should monitor federal updates and engage counsel to adapt compliance programs accordingly. For official guidance and current rules, refer to the agencies listed above.

4. Frequently Asked Questions

The following questions cover common concerns, from basic definitions to complex procedural issues relevant to New York City entities.

What is OFAC and why does it matter in NYC?

OFAC is a U.S. Treasury office that enacts economic sanctions. NYC businesses must screen counterparties to avoid prohibited transactions and penalties.

What are EAR and ITAR, and how do they differ?

EAR regulates dual use and commercial items; ITAR controls defense articles. Licensing requirements and end use restrictions differ between the two regimes.

How do I know if a transaction needs a license?

License needs depend on item classification, destination country, end user, and end use. A Sanctions and Export Controls attorney can review your specifics and advise on licensing.

What is a screening program and why is it important?

A screening program checks counterparties against restricted lists and red flags. It helps prevent violations and the risk of penalties.

Do I need an attorney to handle OFAC inquiries or investigations?

Yes. An experienced attorney can coordinate responses, manage licensing paths, and mitigate potential penalties.

How much can penalties for sanctions violations cost?

Penalties vary by violation, but civil penalties can reach tens of thousands to millions of dollars per incident, plus criminal exposure in some cases.

What is a license exemption and when can I rely on it?

License exemptions allow certain transactions without a license. They depend on specific criteria and must be used correctly to remain compliant.

How long does a typical export license decision take?

License processing times vary by program and complexity, ranging from weeks to several months in some cases.

Do I need ongoing compliance programs in NYC offices?

Yes. Ongoing programs include screening, training, recordkeeping, and annual reviews to reduce risk.

What is a debarment or denial notice, and what should I do?

A debarment or denial halts a transaction and may require legal challenge or corrective actions. An attorney can help prepare a response.

Can a private company be liable for sanctions violations by a third party?

Yes. Principal liability and certain vicarious liability theories can apply if you authorize, facilitate, or knowingly ignore violations.

Is it possible to obtain a license after a violation has occurred?

Sometimes, yes. A lawyer can assess options such as license reinstatement, mitigation, or voluntary disclosure with the government.

5. Additional Resources

• U.S. Department of the Treasury - Office of Foreign Assets Control (OFAC) - Official sanctions programs, designations, licensing guidance. https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs
• U.S. Department of Commerce - Bureau of Industry and Security (BIS) - Export Administration Regulations, licensing processes, and EAR classifications. https://www.bis.doc.gov
• U.S. Department of State - Directorate of Defense Trade Controls (DDTC) - ITAR licensing and controls for defense articles. https://www.pmddtc.state.gov

6. Next Steps

1. Identify your business activities and potential sanctions or licensing issues. Gather contracts, shipping docs, end user statements, and product classifications.

2. Research NYC-based attorneys who specialize in sanctions and export controls. Focus on experience with EAR, ITAR, OFAC, and cross border licensing for your industry.

3. Request a no obligation initial consultation to discuss your matter, potential licenses, and licensing timelines. Ask about fees and anticipated case plan.

4. Prepare a detailed memo for the consultation with timeline, volume of transactions, and a list of designations or screening concerns you have faced.

5. During the engagement, establish a compliance plan including screening, training, and recordkeeping. Agree on a monitoring schedule and regular updates.

6. Develop a licensing strategy with your attorney, including whether voluntary disclosures or mitigation steps are appropriate for open issues.

7. Implement the plan in your NYC office or operations, and schedule periodic reviews to adapt to changes in sanctions and export control regulations.