قائمة مكتب مراقبة الأصول الأجنبية الإمارات العربية المتحدة

تيم إليوت
Welcome to Lawgical, the UAE’s first and only regular legal podcast. My name is Tim Elliott. I’m here with Ludmila Yamalova, managing partner of the Dubai-based legal firm Yamalova & Plewka. We’re in JLT, Jumeirah Lakes Towers, on the 18th floor of Reef Tower here in Dubai. Ludmila, it’s always good to see you.

لودميلا يامالوفا
It’s always good to be here with you, Tim.

تيم إليوت
Now, an acronym today: OFAC. I’m going to come clean—I had to look this up. I often have to look a lot of things up before I talk to you, so no surprises. I’d never heard of OFAC until earlier this week. So here goes: OFAC stands for the Office of Foreign Assets Control. It’s a financial intelligence and enforcement agency of the US Treasury Department. It administers and enforces economic and trade sanctions in support of US national security and foreign policy objectives. That’s straight from their website.

I have, of course, heard of sanctions, and really, that’s what we’re going to be talking about. That is what OFAC is all about.

لودميلا يامالوفا
Indeed, OFAC it is. And I have to also make a confession—until about a year ago, I didn’t know much about OFAC either. I’d heard of it and obviously knew some general guidelines about what it was, but I wasn’t intimately familiar with how it worked, especially in the context of my clients and my practice.

تيم إليوت
Isn’t that the way with the legal field? You just need to pepper your conversations with acronyms, and people nod sagely, thinking, “They really know what they’re talking about.”

لودميلا يامالوفا
Yes, exactly. That was me for many years—until about a year ago. I remember friends and colleagues in the legal profession working on OFAC-related discovery projects or specializing in this area. Some of them even traveled to the UAE specifically to work on OFAC matters.

At the time, I heard these discussions in passing but didn’t get involved until the topic hit much closer to home.

تيم إليوت
Why are we talking about OFAC now? Why is it relevant at this point in time?

لودميلا يامالوفا
For a number of reasons. One of the main ones is that I had to quickly familiarize myself with OFAC because it started directly affecting our practice here in the UAE. The recent sanctions introduced by the US and other Western authorities in response to the Russian war in Ukraine have had a significant impact in this region.

Many Russian businesses and individuals began migrating or transitioning to the UAE as a result of these sanctions. The effects of these sanctions soon bled into this region and into my practice, particularly because I speak Russian and have a large number of Russian-speaking clients.

That’s my personal story, but OFAC itself is not a new topic in the UAE. Historically, sanctions have targeted countries like Iran, Syria, Sudan, and Yemen. Businesses here have been navigating OFAC-related issues for years.

تيم إليوت
So while OFAC has been around for a while, the Russia-Ukraine conflict has brought it to the forefront for you?

لودميلا يامالوفا
Absolutely. OFAC sanctions are enforced through lists of individuals, companies, and interests considered to be security threats to US interests. These lists are wide-ranging and have significant consequences.

For example, one major consequence is the inability to transact in US dollars. This is because such transactions pass through US financial systems, and any entities on OFAC lists are blocked from participating.

Here in the UAE, where the dirham is pegged to the US dollar, the impact of these sanctions is even greater.

تيم إليوت
That’s the long arm of enforcement in action.

لودميلا يامالوفا
Yes, indeed. These sanctions don’t just target the primary individual or entity—they extend to all related interests. For instance, if a blocked person is a director or signatory on a bank account, that account may also be flagged and frozen.

تيم إليوت
That must make it nearly impossible to do business.

لودميلا يامالوفا
Exactly. Sanctions severely restrict access to funds, preventing businesses from paying employees, renewing trade licenses, or fulfilling supplier obligations. Even indirect associations with blocked persons or entities can lead to devastating consequences.

تيم إليوت
How does this specifically affect businesses in the UAE?

لودميلا يامالوفا
The UAE has long been a hub for international business, and its geographic proximity to regions like Iran, Syria, and Yemen makes OFAC particularly relevant. Over the years, many entities in the UAE have been placed on OFAC lists due to associations with prohibited activities—whether knowingly or unknowingly.

For example, there was a Russian bank recently licensed by the UAE Central Bank. Shortly after, it was placed on the OFAC list. Following this, the UAE authorities revoked its license. That case illustrates how seriously the UAE takes international sanctions and its collaboration with global regulators.

تيم إليوت
What about individuals or companies trying to get off the OFAC list? Is that even possible?

لودميلا يامالوفا
Yes, there are mechanisms to challenge sanctions. Blocked entities can apply for either a general license or a specific license. General licenses are predefined exceptions that allow certain activities, such as humanitarian transactions. Specific licenses require a direct application to OFAC for permission to conduct specific transactions or engage in particular activities.

As an American lawyer, I can represent clients under these licenses, but my ability to do so is strictly limited. For example, there are caps on how much I can charge, which is designed to prevent exploitation of clients who are in desperate situations.

تيم إليوت
This sounds incredibly complex. Any advice for businesses in the UAE?

لودميلا يامالوفا
The most important takeaway is vigilance. Whether you’re an individual or a business, it’s critical to stay informed about global sanctions and conduct thorough KYC (Know Your Customer) checks. Ignorance is no defense, and the penalties for evading sanctions are severe.

تيم إليوت
That wraps up this episode of لوجيكال. We’ve explored OFAC—the US Office of Foreign Assets Control—and its wide-ranging implications.

Thank you, Ludmila Yamalova, managing partner of Yamalova & Plewka, for your insights.

لودميلا يامالوفا
Thank you, Tim. This has been a fascinating and important discussion.

تيم إليوت
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