Posts by: Dmytro Konovalenko

OFAC screening is the process of checking clients, transactions, and counterparties against OFAC’s sanctions lists. This includes the SDN list, country-specific sanctions lists, and other restricted entities. Screening can be automated using specialized software to detect poten Read more »

SDN stands for Specially Designated Nationals. These are individuals, entities, and organizations identified by OFAC as subject to sanctions. Any property or interests in property of an SDN within U.S. jurisdiction are blocked. U.S. persons are generally prohibited from conductin Read more »

All U.S. persons, including individuals and organizations, must comply with OFAC regulations. U.S. citizens and residents, U.S.-based companies, and their foreign subsidiaries are included. This also applies to financial institutions and businesses operating internationally that Read more »

Yes, OFAC can impose sanctions on entire countries. Examples include North Korea, Iran, Syria, and Cuba. Country-wide sanctions may prohibit virtually all trade, financial transactions, and investment activities with residents or entities of the sanctioned country. Some sanctions Read more »

OFAC sanctions are economic and trade restrictions imposed on specific countries, entities, or individuals. They can include asset freezes, restrictions on financial transactions, prohibitions on export or import of goods, and limitations on business dealings. Sanctions are inten Read more »

OFAC compliance refers to the measures organizations take to adhere to U.S. sanctions regulations. This includes screening clients, counterparties, and transactions against OFAC lists, such as the SDN list. Organizations must implement internal policies, employee training, and re Read more »

OFAC is a division of the U.S. Department of the Treasury. Its role is to administer and enforce economic and trade sanctions based on U.S. foreign policy and national security goals. OFAC collaborates with other U.S. government agencies, including the Department of Justice and l Read more »

Responsibility for detecting OFAC red flags lies primarily with the compliance officers and operational staff within financial institutions. Employees must be trained to recognize signs of potentially prohibited transactions. Red flags can include unusual transaction patterns, in Read more »

Transactions subject to OFAC regulations include any activity that provides a benefit, directly or indirectly, to sanctioned individuals, organizations, or countries. This encompasses wire transfers, loans, investment purchases, brokerage trades, and payments. It also includes th Read more »

All financial services that could facilitate transactions with sanctioned entities or individuals are subject to OFAC regulations. This includes banking services, money transfers, investment management, brokerage operations, insurance, and other financial activities. Even service Read more »

An OFAC check is a process used to verify whether a person, organization, or transaction is restricted under OFAC sanctions. This process is a critical component of compliance for banks, investment firms, and other financial institutions. It involves cross-referencing clients and Read more »

Yes, mutual funds and other investment vehicles are subject to OFAC regulations. Any financial entity that could facilitate a transaction or provide benefit to a sanctioned individual or entity must conduct appropriate screening. This includes verifying investors, counterparties, Read more »