What is OFAC?
The Office of Foreign Assets Control (OFAC) is a U.S. government agency that maintains a list of names and aliases of individuals, organizations and companies that the U.S. government has classified as potentially dangerous and a potential threat to national security. The U.S. government updates these lists periodically and maintains the blocking program. This requirement falls under the USA PATRIOT Act, the anti-terrorism legislation that was signed into law on October 25, 2001 as a result of the events of September 11. Financial institutions, securities firms and insurance companies are required by law to block or freeze property, payment of any funds transfers and transactions with anyone on this list. Failure to comply with OFAC regulations may result in strict penalties. Criminal violations can result in: • Fines of $50,000 to $10,000,000 and/or • Up to 30 years imprisonment For more information on U.S. government’s requirement, compliance, effective date and guidelines, please vi
