US District Court dismisses former Guatemalan official’s delisting claim

27 July 2026

The DC District Court has dismissed Luis Martinez Morales’s delisting claim, granting summary judgment to the US Office of Foreign Assets Control (OFAC) – Martinez Morales v US Department of the Treasury, No. 24-2519.

Mr Martinez was listed under the US Global Magnitsky sanctions programme (Executive Order 13818) in 2023 for using his role in the Guatemalan government for personal gain. OFAC refused his request to be delisted in 2025. See our US delisting page for more on OFAC’s reconsideration process & its new reconsideration portal. Mr Martinez challenged that refusal in court under the Administrative Procedure Act. He had to show OFAC’s decision was “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law” (5 USC §706(2)(A)). The court granted summary judgment to OFAC and said:

• The listing complied with the International Emergency Economic Powers Act, the statute the President relied on to issue EO 13818. The order targets “corruption around the world”, which covers Mr Martinez’s conduct in Guatemala.

• OFAC had not withheld its reasons. They appeared in the US Federal Register and in OFAC’s refusal letter. Redactions made by OFAC in the administrative record covered sensitive information and did not prevent Mr Martinez from challenging his listing.

• The listing was not arbitrary or capricious. His conduct in Guatemala gave a reasonable basis to conclude he had engaged in corruption, meeting the EO 13818 criteria.

• OFAC’s review was thorough and well-reasoned. For example, it explained that the dismissal of a Guatemalan corruption investigation into him was not decisive, because a foreign authority’s decision, even a properly conducted one, does not bind OFAC’s separate assessment under US sanctions law.