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 the export or import of goods, services, or technology to sanctioned countries or entities. Even seemingly routine transactions may be prohibited if they involve a listed SDN or restricted jurisdiction. Financial institutions are required to identify and block prohibited transactions, document their compliance actions, and report certain activities to OFAC. Understanding which transactions are covered is essential to maintaining lawful operations and avoiding penalties.
