What is this OFAC?
Repeat after me, Office of Foreign Assets Control (run by the US Dept. of Treasury). That’s a mouth full.
What does OFAC do?
OFAC manages and implements financial and trade authorizations (sanctions). They closely monitor and in some cases, freeze assets (under the U.S. authority) of targeted foreign countries, regimes, terrorists, international narcotics traffickers, those involved in manufacturing and selling weapons of mass destruction, and other threats to the U.S. economy, national security or foreign policy. These sanctions require collaboration with allied governments and are based upon the United Nations’ directives. (Whew!)
So, there’s an OFAC list I’m supposed to do something with?
OFAC lists individuals and organizations that the government suspects of terrorism or having ties to terrorism. If they are on the list, their assets have or will soon be frozen! Funding organizations with terrorist ties (as listed by OFAC) is illegal. If OFAC finds that your organization is violating the lists, there are major fines involved. (We are talking MAJOR fines… yikes!)
Understanding OFAC and how to become compliant can be a challenge.