What is OFAC?

OFAC (Office of Foreign Assets Control) is a U.S. government agency that administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States. It publishes lists of sanctioned individuals and entities (Specially Designated Nationals and Blocked Persons List - SDN List). Organizations use OFAC compliance programs to screen customers, vendors, and other parties against these lists to avoid doing business with prohibited individuals or entities, which could result in significant penalties.