Consolidate Payment License For Free

Who must comply with OFAC regulations? U.S. persons must comply with OFAC regulations, including all U.S. citizens and permanent resident aliens regardless of where they are located, all persons and entities within the United States, all U.S. incorporated entities and their foreign branches.

Can I tell the customer they are on the OFAC list? You are permitted to inform customer they are on the OFAC list, and that is the reason their assets were blocked or transaction rejected.

When OFAC grants specific licenses, it does not make them public. If someone has an interest in learning what specific licenses OFAC has granted, that person has to file a Freedom of Information Act (FOIA) request, a notoriously slow-moving process.

Once it has been determined that funds need to be blocked, they must be placed into an interest-bearing account on your books from which only OFAC-authorized debits may be made. The blocking also must be reported to OFAC Compliance within 10 business days.

To release funds frozen by OFAC, an unblocking application must be submitted to OFAC and reviewed. There is no fee to file an unblocking application with OFAC. OFAC will provide a determination as to whether the violation of sanctions occurred and whether it is in US sanctions policy to release the funds.

OFAC administers a number of different sanctions programs. The sanctions can be either comprehensive or selective, using the blocking of assets and trade restrictions to accomplish foreign policy and national security goals.

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) administers and enforces U.S. economic and trade sanctions programs against targeted foreign governments, individuals, groups, and entities in accordance with national security and foreign policy goals and objectives.