The Office of Foreign Assets Control (OFAC) is a division of the U.S. Department of the Treasury responsible for administering and enforcing economic and trade sanctions. These sanctions are applied against targeted foreign countries, organizations, and individuals. The primary goal of OFAC is to protect U.S. national security, foreign policy, and the financial system. OFAC maintains lists such as the Specially Designated Nationals (SDN) list to identify entities and individuals prohibited from conducting transactions with U.S. persons or entities. The office also provides guidance to financial institutions and businesses on compliance procedures. Compliance with OFAC regulations is mandatory for all U.S. persons and organizations, including their foreign branches.
