Blocked international transfers resolved for multinational spirits distributor
Situation:
A multinational alcohol distributor encountered significant operational disruption after multiple international wire transfers were blocked by U.S. financial institutions over potential sanctions concerns. The client required immediate guidance regarding the status of the blocked funds, potential exposure under U.S. sanctions laws, and whether OFAC considered the company itself to be blocked.
Stakes:
The blocked transfers created serious financial and operational uncertainty, including disruptions to cross-border payments, supplier obligations, distribution activities, and banking relationships. The matter also raised broader concerns regarding reputational exposure, counterparty confidence, and the risk that financial institutions could continue restricting transactions absent formal clarification from OFAC. The client required both regulatory certainty and restoration of access to blocked funds.
Result:
Ferrari & Associates represented the client in investigating the blocked transactions, preparing license applications to OFAC seeking release of the funds, and requesting formal agency guidance regarding the client’s sanctions status under U.S. law. OFAC ultimately confirmed that the client was not blocked and issued licenses authorizing the release of all blocked transfers.
