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 services that do not directly involve the transfer of funds, such as advisory or consulting services, may fall under OFAC if they benefit a sanctioned party. Companies providing international services must ensure compliance across all business lines, including subsidiaries and affiliates abroad. OFAC requires organizations to implement internal policies, employee training, and monitoring systems. Non-compliance can result in severe civil penalties and reputational harm.
