OFAC stands for Office of Foreign Assets Control, a financial intelligence and enforcement agency of the U.S. Treasury Department. It administers and enforces economic and trade sanctions in support of U.S. national security and foreign policy objectives.

OFAC sanctions can target individuals, entities, countries, or regions. The sanctions are based on U.S. foreign policy and national security goals related to terrorism, international narcotics trafficking, human rights abuses, weapons of mass destruction proliferation, and other threats.

OFAC sanctions can have significant implications for businesses and individuals that operate in or with sanctioned jurisdictions or persons. OFAC sanctions can prohibit or restrict trade, investment, travel, or financial transactions. Violating OFAC sanctions can result in civil or criminal penalties, such as fines, asset freezes, or denial of access to the U.S. financial system.

Therefore, it is important for businesses and individuals to comply with OFAC sanctions and to conduct due diligence to avoid engaging in prohibited or restricted activities. OFAC provides guidance and resources on its website (https://home.treasury.gov/policy-issues/financial-sanctions) to help the public understand and comply with its sanctions programs. OFAC also issues licenses to authorize certain transactions that would otherwise be prohibited or restricted under its sanctions.

OFAC sanctions are dynamic and constantly evolving in response to changing global situations and U.S. policy priorities. Therefore, it is essential to stay updated on the latest developments and changes in OFAC sanctions and to consult with legal experts if necessary.