Frequently Asked Questions

497. In providing services consistent with the Compliance Services Guidance to a foreign covered person, can a U.S. person opine on the legality of a transaction under U.S. sanctions laws, including by providing a legal opinion, certification, or other clearance as to the legality of such transaction, where it would be prohibited for a U.S. person to engage in such transaction?

497 … Yes. In providing services to a foreign covered person, a U.S. person may opine on the legality of a transaction under U.S. sanctions laws, including by providing a legal opinion, certification, or other clearance as to the legality of such transaction, where it would be prohibited for a U.S… Read more

498. The Compliance Services Guidance states that a U.S. person may solicit information from covered persons and conduct research to make a determination as to the legality of transactions under U.S. sanctions laws. What are examples of research that would be allowable under the Compliance Services Guidance?

498 … U.S. persons may conduct research using the internet, including searches of commercial databases, as well as published reference materials for the purpose of determining the legality of transactions under U.S. sanctions laws. In addition, U.S. persons may solicit information regarding a… Read more

499. What type of research exceeds the scope of the Compliance Services Guidance?

499 … A U.S. person may not conduct research that otherwise involves the importation or exportation of services where such transactions are prohibited by any part of 31 C.F.R. chapter V, unless such transactions are authorized by OFAC. … What type of research exceeds the scope of the Compliance… Read more

116. On February 14, 2008, OFAC issued guidance stating that the property and interests in property of an entity are blocked if the entity is owned, directly or indirectly, 50% or more by a person whose property and interests in property are blocked pursuant to an Executive Order or regulations administered by OFAC. We act as an intermediary bank in wire transfers between other banks. Does OFAC expect banks that are acting as financial intermediaries to research non-account parties that do not appear on the SDN List, but are involved with or referenced in transactions that are processed on behalf of correspondents?

116 … A wire transfer in which an entity has an interest is blocked property if the entity is 50% or more owned by a person whose property and interests in property are blocked. This is true even in instances where such a transaction is passing through a U.S. bank that (1) is operating solely as an… Read more

481. If there is an active and ongoing investigation against an individual or entity for apparent violations of the Burmese Sanctions Regulations (“BSR”), would that investigation cease now that the President has ended economic and financial sanctions on Burma and the prohibitions in the BSR are no longer in effect?

481 … Pending OFAC enforcement matters will proceed irrespective of the termination of OFAC-administered sanctions on Burma, and OFAC will continue to review apparent violations of the BSR , whether they came to the agency’s attention before or after the Burma sanctions program was terminated.… Read more

695. What are the general travel authorizations in the Cuba program?

695 … Travel-related transactions are permitted by general or specific licenses for certain travel related to the 12 categories of activities identified in 31 CFR § 515.560(a) . Those travel-related transactions permitted by general license, subject to specified criteria and conditions, include:… Read more

696. Are authorized travelers who have initiated travel arrangements prior to the addition of an entity or subentity on the State Department’s Cuba Restricted List required to cancel their Cuba-related travel plans if their travel arrangements involve direct financial transactions with a listed entity or subentity?

696 … Consistent with the Administration’s interest in avoiding negative impacts on Americans for arranging lawful travel to Cuba, any travel-related arrangements that include direct financial transactions with entities and subentities that appear on the State Department’s Cuba Restricted List will… Read more

697. Do travelers who fall within the scope of a general license need to submit a written request to OFAC for permission to travel or conduct transactions?

697 … No. No further permission from OFAC is required to engage in transactions by a person who meets all criteria in a general license. Individuals wishing to engage in activities that may fall within the scope of a general license should review the relevant general licenses contained in the CACR… Read more

698. Is travel to Cuba for tourist activities permitted?

698 … No. Consistent with the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA ), travel-related transactions involving Cuba are only permitted for the 12 categories of activities identified in the CACR. Travel-related transactions for other purposes remain prohibited. … Is travel to… Read more

699. What constitutes “a close relative” for generally authorized family travel?

699 … OFAC regulations generally authorize persons subject to U.S. jurisdiction and those sharing a dwelling with them as a family to visit a close relative in Cuba, including a close relative who is a Cuban national or a person ordinarily resident in Cuba, or to visit or accompany a close relative… Read more

Frequently Asked Questions

Office of Terrorism and Financial Intelligence