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Home / Services / OFAC Compliance Review

Mandate 08 · Keep it current

OFAC Compliance Review

Most residual Russia work is either clearly barred or clearly administrative. The damage is in the middle — and in over-restricting what licenses still allow.

Policy by rumor

U.S. sanctions rules are amended on a short cycle. An internal memo from 2022 is not a file for this year. Over-restriction often blocks tax payments and director appointments that applicable general licenses still allow — and it does not stop a clever counterparty from creating a real violation.

  • Over-restriction that leaves the subsidiary unfiled and unauditable
  • Under-restriction that treats residual sales as “just admin”
  • No SDN refresh after a director or bank change
  • No written basis for the board when a bank asks

What it is

U.S. companies freeze more residual administration than the licenses require, and a smaller number wander over the line because nobody mapped the entity’s actual leftover operations to the text. Both errors are expensive. One is a missed wind-down; the other is an enforcement file.

Separately, U.S. sanctions rules restrict certain professional services — including accounting, corporate-formation, and management consulting — when they are supplied to persons in Russia. That is why the parent does not file, does not sit as a paid nominee, and does not “just have HQ accounting do 1C.” The affiliate — not a U.S. person — does the in-country acts. Applicable general licenses under U.S. sanctions law may allow residual administrative steps for winding down or maintaining an entity. They are not permission to keep trading.

Colibry produces a written English memo for this entity: the sanctions rules that apply, SDN and 50-percent screening, sectoral overlay, and a three-column result — permitted, prohibited, needs further review. It is not a substitute for a law-firm opinion. It is the factual map your counsel can adopt or challenge.

What is in scope — and what is not

We do

  • Mapping of applicable U.S. sanctions rules and general licenses then in force
  • Review of the client’s remaining operations — not a generic Russia deck
  • SDN and blocked-person screening of the entity, directors, known counterparties, and banks
  • Sectoral sanctions analysis as applied to this profile
  • Export-controls (EAR / ITAR) flag if goods or technology still move
  • Written memo: permitted / prohibited / further review, plus a recommended admin structure

We do not

  • A formal attorney opinion (we work with your counsel, or you take the memo to them)
  • A specific OFAC license application as a standalone lobbying project
  • Clearance of new commercial activity in Russia

How the work runs

  1. 01

    Facts

    Entity chart, leftover contracts, banks, directors, any goods or IP.

  2. 02

    Screen

    SDN, 50 percent, sectoral. Hits stop the file.

  3. 03

    License map

    Which sanctions rules apply, which conditions, what has changed.

  4. 04

    Memo

    Three columns and a recommended Colibry (or decline) structure.

Calendar

WhenWhat
Week 1Document request and screening
Week 2Draft map to your counsel if they are copied
Week 2–3Final memo

What we need to start

Missing items are a workstream, not a reason to wait. A signed note that a year of filings does not exist is more useful than another month of silence.

  • Structure chart down to the Russian entity
  • Current directors, banks, and material counterparties
  • Description of leftover activity (even “none — dormant”)
  • Any prior OFAC memo or bank questionnaire

Reporting

One written English memo. Optional short oral walkthrough with GC. Update if a license is amended during a live engagement.

Who it is for

General counsel, sanctions counsel, and boards that need a written basis before authorizing remaining Russia-related administration.

We will not take

  • A request to bless new Russia sales
  • A request to work around a listing

Fees and start

Fixed-scope engagements with fees agreed in advance. Pricing is set after an initial consultation at no charge. Standard report: 2–3 weeks from receipt of the document set. See how the New York contract works and the week-one document pack.

Questions on this mandate

Is this legal advice?
Colibry is not a law firm. The memo is an administrative and license map. Many clients send it to U.S. sanctions counsel for the opinion layer.
Do the licenses last forever?
No. U.S. sanctions rules and general licenses are amended. We date-stamp the memo to the text then in force and warn you that a successor can narrow or replace it.
What if screening hits mid-engagement?
We stop the underlying work, notify you, and recast or decline.

Confidential intake

Begin with a conversation, not a wire to Russia.

Complimentary initial consultation. We typically respond within one business day. Inquiries are handled with complete discretion.

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