OFAC is a department of the U.S. Treasury that enforces economic and trade sanctions against countries and groups of individuals involved in terrorism, narcotics and other disreputable activities. It runs many sanctions based on United Nations mandates. It is sthe successor to the Office of Foreign Funds Control that was established during WWII following the invasion of Norway by Germany.
It maintains a list of Specially Designated Nationals and Blocked Persons (SDN list), available at www.ustreas.gov/offices/enforcement/ofac/sdn. Members may not accept funds from individuals or entities on this list. As a result, FCMs and IBs must check new customers against the list and must check existing customers against it whenever it is updated.
OFAC also administers a number of economic sanction and embargo programs that target geographic regions and governments, and this information is available at www.ustreas.gov/offices/enforcement/ofac/programs. Members should review new and existing customers to determine if any customers are located in countries under sanction programs and, if so, whether the sanctions affect the Member’s ability to do business with those customers. Through these sanctions and trade policies, the OFAC tries to make the economic lives of these countries or groups of individuals very difficult. This is done as a way to pressure a country to conform to certain laws or regulations, or to discontinue disreputable activity.
Such matters are extremely complicated, often requiring specialized knowledge of very ambiguous and complex regulations and processes. Only a lawyer with extensive experience in dealing with OFAC will be able to effectively represent a client in such matters.
It maintains a list of Specially Designated Nationals and Blocked Persons (SDN list), available at www.ustreas.gov/offices/enforcement/ofac/sdn. Members may not accept funds from individuals or entities on this list. As a result, FCMs and IBs must check new customers against the list and must check existing customers against it whenever it is updated.
OFAC also administers a number of economic sanction and embargo programs that target geographic regions and governments, and this information is available at www.ustreas.gov/offices/enforcement/ofac/programs. Members should review new and existing customers to determine if any customers are located in countries under sanction programs and, if so, whether the sanctions affect the Member’s ability to do business with those customers. Through these sanctions and trade policies, the OFAC tries to make the economic lives of these countries or groups of individuals very difficult. This is done as a way to pressure a country to conform to certain laws or regulations, or to discontinue disreputable activity.
Such matters are extremely complicated, often requiring specialized knowledge of very ambiguous and complex regulations and processes. Only a lawyer with extensive experience in dealing with OFAC will be able to effectively represent a client in such matters.
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