OFAC Compliance

Created in 1950, OFAC is part of the U.S. Treasury Department of Terrorism and Financial Intelligence. The legal basis for OFAC’s jurisdiction and control can be found in the Trading with The Enemy Act (TWEA), International Emergency Economic Powers Act (IEEPA), the Foreign Asset Control Regulations 31 CFR Part 500, as well as other statutes, laws, and executive orders surrounding countries such as Iran, Cuba, Russia, Venezuela and more.

The scope of OFAC rules and regulations includes blocking assets of foreign parties, trade restrictions, and controlling financial transactions, among other things. OFAC has jurisdiction over all U.S. persons and citizens, and foreign entities, which means the scope of this agency’s reach is very far.

Recently, several extensive and public violations have caused many organizations to take a second look at their sanctions/embargo compliance and to implement programs to help adhere to OFAC regulations.