What is OFAC and what does it do?
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) administers and enforces economic and trade sanctions against targeted foreign jurisdictions and regimes, as well as individuals and entities engaging in harmful activity, such as terrorists, international narcotics traffickers, weapons of mass destruction proliferators, and other malign actors, in response to threats to the national security, foreign policy, or economy of the United States. OFAC sanctions take various forms, from blocking the property of specific individuals and entities to broadly prohibiting transactions involving an entire country or geographic region, such as through a trade embargo or prohibitions related to particular sectors of a country’s economy.
Read more about OFAC’s history on the About OFAC page on OFAC’s website.
Date Updated: August 21, 2024.
What kinds of prohibitions does OFAC impose?
Each OFAC sanctions program is based on different foreign policy and national security goals, so the prohibitions imposed may vary between programs. Many sanctions programs require blocking the property and interests in property of specific individuals and entities and prohibit dealing in such blocked property. (For more information, see FAQ 9.) OFAC sanctions prohibitions may also take many other forms that do not require blocking but prohibit U.S. persons from engaging in certain trade or financial transactions and other dealings unless authorized by OFAC or exempted by statute. Non-U.S. persons are also subject to certain OFAC prohibitions. For example, non-U.S. persons are prohibited from causing or conspiring to cause U.S. persons to violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions. For information on specific prohibitions, authorizations, or exemptions under a particular OFAC sanctions program, please see the relevant OFAC implementing regulations and the Sanctions Programs and Country Information page on OFAC’s website.
Date Updated: August 21, 2024.
Are there exceptions to sanctions prohibitions? Are exceptions the same across sanctions programs?
Yes. There may be exceptions to sanctions prohibitions. Exceptions may take the form of authorizations, such as general licenses and specific licenses, or exemptions.
OFAC issues general licenses in most of its sanctions programs to authorize certain transactions that would otherwise be prohibited, such as transactions related to humanitarian activities or official business of the U.S. government. General licenses are self-executing, meaning they allow persons to engage in certain transactions involving the United States or U.S. persons without needing to apply for a specific license provided the transactions meet certain terms and conditions as described in the general license.
OFAC may also issue specific licenses on a case-by-case basis. In contrast to general licenses, which authorize certain transactions for all persons who meet the conditions described in the license, specific licenses only authorize the licensee(s) to engage in certain transactions that would otherwise be prohibited. For guidance on how to request and apply for a specific license, please see 31 CFR § 501.801 and the License Application page on OFAC’s website.
Exceptions may also take the form of exemptions, meaning certain types of transactions are exempt from sanctions and therefore not prohibited. For example, in certain sanctions programs transactions involving personal communications, humanitarian donations, information or informational materials, and travel are exempt from relevant prohibitions.
Most OFAC sanctions programs have certain exceptions, but exceptions may vary in type and scope across different sanctions programs. For information on the authorizations or exemptions under a particular OFAC sanctions program, please see the relevant OFAC implementing regulations and the Sanctions Programs and Country Information page on OFAC’s website.
Date Updated: August 21, 2024.
Where can I find specific details about a particular sanctions program?
References to relevant statutes, executive orders, regulations, guidance, general licenses, and sanctions actions for each sanctions program may be found in the Sanctions Programs and Country Information page on OFAC’s website. The OFAC Legal Library page on OFAC’s website also contains links to the relevant legal authorities, including statutes, executive orders, and the Code of Federal Regulations, where specific OFAC sanctions regulations can be found.
Date Updated: August 21, 2024.
If I want to engage in a transaction or activity prohibited by OFAC, how can I do so? Can I rely on a general or specific license to engage in a transaction involving a sanctioned jurisdiction or person?
OFAC issues general licenses to authorize certain transactions that would otherwise be prohibited pursuant to a particular sanctions program. These general licenses are self-executing, meaning they allow persons to engage in certain transactions involving the United States or U.S. persons without needing to apply for a specific license, provided the transactions meet certain terms and conditions as described in the general license. In addition, some categories of activities, such as personal communications and transactions ordinarily incident to travel, may be exempt from sanctions in certain programs. Subject to sanctions program-specific considerations, non-U.S. persons do not generally risk being sanctioned for engaging in or facilitating transactions for which a U.S. person would not require a specific license.
If you seek to engage in a prohibited transaction involving a U.S. person or blocked property and there is no applicable general license or exemption, you may apply for a specific license from OFAC by submitting a license application. OFAC may grant, on a case-by-case basis, a specific license to authorize a person to engage in a transaction, or series of transactions, that otherwise would be prohibited by sanctions. For guidance on how to request and apply for a specific license, please see 31 CFR § 501.801 and the License Application page on OFAC’s website.
Date Updated: August 21, 2024.
What does OFAC mean when it refers to "blocked" property? How does OFAC define “property”?
"Blocking" refers to freezing assets or other property. Blocking immediately imposes an across-the-board prohibition against transfers or dealings of any kind with regard to the property.
OFAC authorities may require U.S. persons to block all property and interests in property of certain persons, known as "blocked persons." When this is the case, any property and interests in property of a blocked person that are within the United States or within the possession or control of a U.S. person must be blocked (i.e., "frozen")—not seized—and may not be transferred, withdrawn, or otherwise dealt in. Title to the blocked property remains with the blocked person, but the exercise of powers and privileges normally associated with ownership is prohibited without authorization from OFAC.
In addition, parties must report blocked property to OFAC within 10 business days of the property becoming blocked. Blocked persons include persons that appear on OFAC’s List of Specially Designated Nationals and Blocked Persons (SDN List), foreign governments subject to blocking, and persons blocked pursuant to OFAC’s “50 Percent Rule.” For further information, see FAQ 401 and OFAC guidance on the "50 Percent Rule."
The term "property," as defined in various OFAC regulations, includes financial property (e.g., money, checks, savings accounts, stocks, bonds, debt, or any other financial instruments), real, tangible, and intangible assets (e.g., goods, merchandise, ships, land contracts, and real estate), and any other property or interests therein present, future, or contingent. For information on how OFAC defines property in a particular sanctions program, please see the relevant OFAC implementing regulations and the Sanctions Programs and Country Information page on OFAC’s website.
Date Updated: August 21, 2024.
What jurisdictions or countries are sanctioned by the United States?
While OFAC does not maintain a specific list of countries with which U.S. persons may not do business, the Sanctions Programs and Country Information page on OFAC's website provides a list of sanctions programs administered by OFAC. OFAC implements, administers, and enforces U.S. economic sanctions that target either a particular jurisdiction (i.e., a country or geographic region) or specified activities (e.g., terrorism or narcotics trafficking) anywhere in the world. Within each sanctions program, OFAC may implement various types of sanctions based on different foreign policy and national security goals. Most programs include sanctions blocking the property of specific individuals or entities, while some of the most comprehensive programs broadly prohibit transactions or dealings involving an entire jurisdiction. Each sanctions program is unique, and sanctions programs may change frequently. For up-to-date information on an OFAC sanctions program, including applicable exemptions and authorizations, you always should carefully review the relevant OFAC implementing regulations and the Sanctions Programs and Country Information page on OFAC's website.
Broad jurisdiction-based sanctions: Several OFAC sanctions programs apply broad jurisdiction-based sanctions that generally prohibit U.S. persons from engaging in most transactions or dealings involving that particular jurisdiction, such as exporting or importing goods, services, or technology to or from that jurisdiction. As of this FAQ's publication (please see "date updated" at the bottom of this text), jurisdictions subject to such broad sanctions (at times referred to as comprehensive sanctions) include:
Additionally, although the Russian Federation is not subject to the same degree of jurisdiction-based prohibitions, OFAC sanctions prohibit certain categories of transactions with Russia, including the export and import of certain goods and services to or from Russia. (See OFAC's Russia-related sanctions programs for more detail.)
Government blocking sanctions: Some OFAC sanctions programs apply government blocking sanctions, which require the blocking of all property and interests in property of a particular foreign government or regime that are or come within U.S. jurisdiction. Each government subject to these sanctions is defined within the relevant authorities, but generally, the definition of the blocked government includes any political subdivision, agency, or instrumentality (including any entity owned or controlled directly or indirectly by any of the foregoing). As of this FAQ's publication (please see "date updated" at the bottom of this text), foreign governments subject to such government blocking sanctions include:
Aside from programs that employ these broad sanctions, many OFAC sanctions programs that relate to a particular jurisdiction employ more limited sanctions prohibitions and do not generally prohibit activity with the jurisdiction nor block the jurisdiction's government (e.g., OFAC's Nicaragua-related Sanctions program does not generally prohibit transactions involving Nicaragua, and similarly, OFAC's Democratic Republic of the Congo (DRC)-Related Sanctions program targets, in part, persons threatening the peace, security, or stability of the DRC and the surrounding region). Note that programs such as these may include sanctions against certain government officials or entities without blocking the entire government of the subject jurisdiction. Most OFAC sanctions programs impose sanctions, such as blocking sanctions, on targeted persons (i.e., individuals and entities). For example, persons appearing on OFAC's List of Specially Designated Nationals and Blocked Persons (SDN List) are blocked pursuant to OFAC regulations and other authorities. When such list-based blocking sanctions apply, generally U.S. persons are prohibited from engaging in transactions involving blocked persons wherever such blocked persons are located, and all property of blocked persons within U.S. jurisdiction (including within the possession or control of U.S. persons, wherever located) must also be blocked. Aside from blocking sanctions, OFAC may impose non-blocking prohibitions on targeted persons, which may appear on other sanctions lists maintained by OFAC (referred to as Non-SDN Lists). Note that not all sanctioned persons are located in sanctioned jurisdictions; sanctioned persons can be located anywhere in the world.
For more information on OFAC's sanctions lists, see OFAC's Sanctions List Service tool, the OFAC Basics video series, and Frequently Asked Questions (FAQs) on Basic Information on OFAC and Sanctions, Specially Designated Nationals (SDNs) and the SDN List, and How to Search OFAC's Sanctions Lists.
Who must comply with OFAC sanctions?
All U.S. persons must comply with OFAC sanctions, including all U.S. citizens and permanent residents regardless of where they are located, all individuals and entities within the United States, and all U.S. incorporated entities and their foreign branches. Terms such as "U.S. person" and "person subject to U.S. jurisdiction" are defined in the implementing regulations for a particular sanctions program in 31 CFR chapter V. (See e.g., 31 CFR § 560.314 (Iranian Transactions and Sanctions Regulations (ITSR)); 31 CFR § 598.318 (Foreign Narcotics Kingpin Sanctions Regulations). In the case of certain programs, foreign subsidiaries owned or controlled by U.S. persons also must comply. (See e.g., 31 CFR § 560.215 (ITSR); 31 CFR § 510.214 (North Korea Sanctions Regulations)). Non-U.S. persons are also subject to certain sanctions prohibitions. For example, non-U.S. persons are prohibited from causing or conspiring to cause U.S. persons to violate U.S. sanctions, as well as engaging in conduct that evades U.S. sanctions. Certain programs also require foreign persons reexporting certain goods, technology, or services from the United States to comply with U.S. sanctions, even if no U.S. persons are involved in the reexport.
Date Updated: August 21, 2024.
How much are the penalties for violating OFAC sanctions regulations?
Violations of OFAC-administered sanctions programs may result in civil and, in some cases, criminal penalties. Penalties for violations can be substantial. Civil penalties vary by sanctions program, and the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalty Inflation Adjustment Act Improvements Act of 2015, requires OFAC to adjust civil monetary penalty amounts annually. For current penalty amounts, see Appendix A to 31 CFR part 501—Economic Sanctions Enforcement Guidelines. For a list of select OFAC enforcement actions, organized by year, please see the Civil Penalties and Enforcement Information page on OFAC’s website.
Date Updated: August 21, 2024.
I am aware of a possible violation of OFAC-administered sanctions. How can I report the possible violation to OFAC? Are there benefits to reporting this information to OFAC?
OFAC encourages anyone who is aware of possible violations of OFAC-administered sanctions to report them to OFAC through OFAC's Disclosure Portal. In considering any enforcement action, OFAC looks at the totality of the circumstances surrounding any possible violation, including whether a matter was voluntarily self-disclosed. OFAC considers voluntary self-disclosure a mitigating factor that, pursuant to OFAC's Economic Sanctions Enforcement Guidelines, may result in a reduction in the base amount of any possible civil penalty. Benefits may also include a greater likelihood of avoiding a financial penalty.
OFAC's Enforcement Guidelines explain what constitutes a voluntary self-disclosure for purposes of receiving a reduction in the base penalty or penalty mitigation. Among other factors, the guidelines state that, in addition to notification of an apparent violation, a voluntary self-disclosure must include, or be followed within a reasonable period of time by, a report of sufficient detail to afford OFAC a complete understanding of an apparent violation's circumstances. When such a report is not included with an initial notification, OFAC will generally expect such a report within 180 days after the initial notification. A voluntary self-disclosure also may evidence the extent of an organization's cooperation — an important factor OFAC considers in determining the appropriate enforcement response.
All submissions to the Disclosure Portal should conform to OFAC's Production Submission Standards, which detail OFAC technical standards for formatting electronic document production.
For resources related to OFAC enforcement, please see OFAC's Civil Penalties and Enforcement Information page. For information on an effective sanctions compliance program, see OFAC's Framework for OFAC Compliance Commitments.
In addition, the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) maintains a whistleblower incentive program for violations of OFAC-administered sanctions, in addition to violations of the Bank Secrecy Act. Individuals located in the United States or abroad who provide information may be eligible for awards if the information they provide leads to a successful enforcement action that results in monetary penalties exceeding $1,000,000. The U.S. Department of Justice (DOJ) and the U.S. Department of Commerce's Bureau of Industry and Security (BIS) also maintain their own disclosure programs, including for violations of U.S. sanctions and export controls laws.
Great care should be taken when placing reliance on such materials to ensure that the transactions in question fully conform to the letter and spirit of the published materials and that the materials have not been superseded.
Yes. OFAC, therefore, strongly encourages parties to exercise due diligence when their business activities may touch on an OFAC-administered program and to contact OFAC if they have any questions about their transactions.
What lists does OFAC maintain? Where can I find these lists?
OFAC publishes lists of individuals and entities that are subject to OFAC-administered sanctions. One such list is known as the List of Specially Designated Nationals and Blocked Persons List, or "SDN List," which is available on OFAC’s website. Property and interests in property of the individuals and entities on the SDN List, that is within the United States or within the possession or control of U.S. persons are blocked. Additionally, U.S. persons are generally prohibited from dealing with the individuals and entities on the SDN List.
It is important to note that some OFAC sanctions block categories of persons even if those persons do not appear on the SDN List, including most Cuban nationals, blocked foreign governments, or persons blocked pursuant to OFAC’s "50 Percent Rule" (i.e., any entity owned individually or in the aggregate, directly or indirectly, 50 percent or more by one or more blocked persons). The property and interests in property of such an entity are blocked regardless of whether the entity itself is listed on the SDN List.
In addition, OFAC maintains other sanctions lists of persons that are subject to non-blocking sanctions. These lists are also available on OFAC’s website. For information on specific prohibitions under a particular OFAC sanctions program, please see the relevant OFAC implementing regulations and the Sanctions Programs and Country Information page on OFAC’s website.
Date Updated: August 21, 2024.
I tried to ship a package and it was either "blocked" by a shipping company or returned to me because of "OFAC sanctions." Why? How do I get my package back?
A package may be blocked or rejected for multiple reasons. U.S. persons, including shipping companies, are required to "block" packages in which a person blocked by OFAC-administered sanctions has an interest. When a package is required to be "blocked" due to sanctions, the shipper must retain the package rather than return it to the sender. In other circumstances, sanctions may not require that the package be blocked, but a shipping company may have to return your package, or "reject" it. For example, if the package was destined for a location under a U.S. trade embargo and was not otherwise eligible to be shipped in accordance with an existing exemption or OFAC authorization, the shipping company may reject and return your package.
If your package was blocked due to OFAC sanctions, you may request authorization from OFAC for the blocked package to be released by submitting a License Application that includes a detailed description of the package’s contents and an explanation of the package’s air waybill or Customs Declaration and Dispatch form.
Please see the Sanctions Programs and Country Information page on OFAC’s website for more information on the restrictions on shipments to sanctioned jurisdictions.
Date Updated: August 21, 2024.
How do I verify the authenticity of an OFAC document?
If you have questions about the authenticity of an OFAC-issued document that is not publicly posted on OFAC’s website, you may contact OFAC and reference the specific case ID or FAC number that is included on the document.
Date Updated: August 21, 2024.
Does OFAC issue certificates of non-inclusion, or issue a so-called "safe list" to help prove that an entity or individual is not on one of OFAC’s sanctions lists?
No. OFAC does not issue non-inclusion certificates to show an entity or individual is not listed on one of OFAC’s sanctions lists, nor does OFAC publish a “safe list.” For questions regarding whether a specific entity or individual may be a positive match to an entry on one of OFAC’s sanctions lists, please see FAQ 5 or the OFAC Basics Videos Series.
Date Updated: August 21, 2024.
Do U.S. sanctions target persons for engaging in political speech, religious practice, or other constitutionally protected activities?
OFAC does not sanction persons for their engagement in activities subject to U.S. constitutional protection, such as protected speech or religious practice or for their religious beliefs; nor do U.S. persons violate OFAC sanctions for engaging in such constitutionally protected activity. Furthermore, additional limitations and authorizations are in place to ensure that U.S. sanctions do not restrict the exchange of information or informational materials, or personal communication. The majority of OFAC sanctions programs are promulgated pursuant to the International Emergency Economic Powers Act, 50 U.S.C. 1701 et seq., which limits the authority to “regulate or prohibit, directly or indirectly . . . any postal, telegraphic, telephonic, or other personal communication, which does not involve a transfer of anything of value . . . or, the importation from any country, or the exportation to any country, whether commercial or otherwise, . . . of any information or informational materials.” 50 U.S.C. § 1702(b)(1), (3).
No authorization is necessary for U.S. persons to engage in activities that are not prohibited by or are otherwise exempt from sanctions. If you are concerned that potential sanctions may interfere with constitutionally protected activities, please reach out to OFAC for further guidance as described here.