Conclusion: The Office of Foreign Assets Control

OFAC’s regulations prohibit transactions with individuals and entities which have some connection with any of the countries against whom federal law imposes economic sanctions. The regulations also restrict transactions involving the countries linked to terrorism and transactions involving drug traffickers.

Access to OFAC’s SDN-BE list and interdict software are essential to any institution’s OFAC compliance effort. In addition, OFAC recommends sound compliance procedures, annual audits, and frequent employee communication.

General and specific licenses are issued by OFAC and have the effect of authorizing certain transactions which would otherwise be prohibited by OFAC’s regulations. General licenses are included in Subpart E of each set of OFAC regulations relating to a particular country.

Severe criminal and civil penalties apply for violation of OFAC rules.

OFAC’s regulations can be found at 31 CFR in the various parts within Chapter V.