- August 31, 2017
- Posted by: CIP Journal
- Category: Immigration
The Office of Foreign Assets Control (“OFAC”) of the US Department of the Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States.
The sanctions can be either comprehensive or selective, using the blocking of assets and trade restrictions to accomplish foreign policy and national security goals.
US citizens (including dual citizens) and entities are prohibited to do any kind of business with individuals or companies from the OFAC sanction countries. US citizens and companies in the must be careful not to violate OFAC by doing business and accepting source of funds originating in these countries. Violating OFAC sanctions by doing business with these blocked list will result in significant civil fines.
OFAC publishes a list of individuals and companies SDN’s owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific. Such individuals and companies are called “Specially Designated Nationals” or “SDNs.”
Their assets are blocked and U.S. persons are generally prohibited from dealing with them.
OFAC maintains a downloadable list of SDN’s approximately 5,500 names of companies and individuals who are connected with the sanctions target in downloadable format and many due diligence firms check with this list for compliance and vetting.