The Office of Foreign Assets Control (OFAC) is an office of the U.S. Department of the Treasury responsible for administering and enforcing economic and trade sanctions against targeted foreign countries, regimes, terrorist organizations, international narcotics traffickers and entities engaged in activities that threaten U.S. national security, foreign policy or economy. OFAC’s sanctions programs are used to restrict or prohibit U.S. individuals, financial institutions and companies from engaging in transactions with certain countries, organizations and individuals that appear on OFAC’s sanctions lists, particularly the Specially Designated Nationals (SDN) list. 

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OFAC operates primarily by publishing and maintaining these lists of sanctioned individuals and entities and by requiring financial institutions and companies to screen customers and transactions against these lists to ensure they do not facilitate prohibited transactions. When a match is found, entities are obligated to report the transaction to OFAC and freeze any funds or assets involved. 

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OFAC’s sanctions programs are a vital part of U.S. national security strategy, helping to prevent money laundering, terrorism financing and other illicit financial activities. By enforcing these measures, OFAC works in coordination with other regulatory authorities and intelligence agencies to combat financial crimes and maintain global financial stability.

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