{"version":"1.0","provider_name":"Customs &amp; International Trade Law Firm","provider_url":"https:\/\/diaztradelaw.com","author_name":"Jennifer Diaz","author_url":"https:\/\/diaztradelaw.com\/author\/jen\/","title":"New OFAC Advisory: Signs of Sham Transactions and Sanctions Evasion - Customs &amp; International Trade Law Firm","type":"rich","width":600,"height":338,"html":"<blockquote class=\"wp-embedded-content\" data-secret=\"hnAxMNhlU5\"><a href=\"https:\/\/diaztradelaw.com\/new-ofac-advisory-signs-of-sham-transactions-and-sanctions-evasion-post-divestment-from-blocked-persons\/\">New OFAC Advisory: Signs of Sham Transactions and Sanctions Evasion<\/a><\/blockquote><iframe sandbox=\"allow-scripts\" security=\"restricted\" src=\"https:\/\/diaztradelaw.com\/new-ofac-advisory-signs-of-sham-transactions-and-sanctions-evasion-post-divestment-from-blocked-persons\/embed\/#?secret=hnAxMNhlU5\" width=\"600\" height=\"338\" title=\"&#8220;New OFAC Advisory: Signs of Sham Transactions and Sanctions Evasion&#8221; &#8212; Customs &amp; International Trade Law Firm\" data-secret=\"hnAxMNhlU5\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\" class=\"wp-embedded-content\"><\/iframe><script type=\"text\/javascript\">\n\/* <![CDATA[ *\/\n\/*! This file is auto-generated *\/\n!function(d,l){\"use strict\";l.querySelector&&d.addEventListener&&\"undefined\"!=typeof URL&&(d.wp=d.wp||{},d.wp.receiveEmbedMessage||(d.wp.receiveEmbedMessage=function(e){var t=e.data;if((t||t.secret||t.message||t.value)&&!\/[^a-zA-Z0-9]\/.test(t.secret)){for(var s,r,n,a=l.querySelectorAll('iframe[data-secret=\"'+t.secret+'\"]'),o=l.querySelectorAll('blockquote[data-secret=\"'+t.secret+'\"]'),c=new RegExp(\"^https?:$\",\"i\"),i=0;i<o.length;i++)o[i].style.display=\"none\";for(i=0;i<a.length;i++)s=a[i],e.source===s.contentWindow&&(s.removeAttribute(\"style\"),\"height\"===t.message?(1e3<(r=parseInt(t.value,10))?r=1e3:~~r<200&&(r=200),s.height=r):\"link\"===t.message&&(r=new URL(s.getAttribute(\"src\")),n=new URL(t.value),c.test(n.protocol))&&n.host===r.host&&l.activeElement===s&&(d.top.location.href=t.value))}},d.addEventListener(\"message\",d.wp.receiveEmbedMessage,!1),l.addEventListener(\"DOMContentLoaded\",function(){for(var e,t,s=l.querySelectorAll(\"iframe.wp-embedded-content\"),r=0;r<s.length;r++)(t=(e=s[r]).getAttribute(\"data-secret\"))||(t=Math.random().toString(36).substring(2,12),e.src+=\"#?secret=\"+t,e.setAttribute(\"data-secret\",t)),e.contentWindow.postMessage({message:\"ready\",secret:t},\"*\")},!1)))}(window,document);\n\/\/# sourceURL=https:\/\/diaztradelaw.com\/wp-includes\/js\/wp-embed.min.js\n\/* ]]> *\/\n<\/script>\n","thumbnail_url":"https:\/\/diaztradelaw.com\/wp-content\/uploads\/2026\/04\/Diaz-Trade-Law-2026-58.png","thumbnail_width":1067,"thumbnail_height":709,"description":"On March 31, 2026, the U.S. Department of the Treasury\u2019s Office of Foreign Assets Control (OFAC) released an important advisory addressing the growing use of sham transactions to evade U.S. sanctions. The guidance highlights how sanctioned individuals and entities often attempt to disguise their continuing interest in property through opaque legal structures, proxies, and other intermediaries. OFAC\u2019s message is clear: transactions that merely appear to transfer ownership but do not genuinely extinguish a blocked person\u2019s interest remain prohibited.\u00a0 What OFAC Defines as a \u201cSham Transaction\u201d\u00a0 Sham transactions occur when blocked persons \u201cgive up their property on paper only,\u201d while continuing to benefit from or control the asset. These arrangements often involve:\u00a0 Proxies, straw owners, or front companies acting on behalf of sanctioned individuals.\u00a0 Opaque legal structures, including multi\u2011layered LLCs, partnerships, or trusts.\u00a0 Transfers to family members or close associates who may serve as facilitators.\u00a0 Commercially unreasonable transfers, such as those lacking adequate consideration.\u00a0 Continued use or control of the asset by the blocked person after the purported transfer.\u00a0 Pro Tip: Look beyond legal formalities and identify the economic realities of the transaction.\u00a0 Red Flags Identified by OFAC\u00a0 The advisory outlines several indicators that a transaction may be a sham designed to evade sanctions. These include:\u00a0 Transfers with no legitimate business purpose or to individuals lacking relevant expertise.\u00a0 Complex corporate structures in high\u2011risk jurisdictions.\u00a0 Inconsistent or incomplete documentation surrounding the transfer.\u00a0 Timing of the transfer, particularly if it occurs close to a sanctions designation.\u00a0 Evasive or vague responses from intermediaries when [&hellip;]"}