OFAC guidelines

OFAC (Office of Foreign Assets Control) is a U.S. government agency that enforces economic and trade sanctions. Its guidelines prohibit U.S. persons and entities from engaging in transactions with targeted countries, organizations, or individuals involved in activities like terrorism, drug trafficking, or human rights violations. The goal is to restrict access to the U.S. financial system and trade to support national security and foreign policy. Compliance involves screening transactions and parties against OFAC’s sanctioned lists and adhering to specific restrictions. Violations can result in hefty penalties, so organizations must carefully ensure they do not do business with sanctioned entities.