OFAC Sanctions
Office of Foreign Assets Control
US Treasury–administered economic sanctions that prohibit dealings with designated persons, entities, and jurisdictions.
The Office of Foreign Assets Control (OFAC) administers and enforces US economic and trade sanctions. Financial institutions must screen customers and transactions against OFAC’s lists — most prominently the Specially Designated Nationals (SDN) list — and block or reject prohibited dealings.
OFAC liability is strict: a violation can occur even without intent. An effective sanctions compliance program includes management commitment, risk assessment, internal controls (including screening at onboarding and on an ongoing basis), testing and auditing, and training.
For crypto businesses, OFAC screening extends to wallet addresses and counterparties, and OFAC has published guidance specific to the virtual currency industry.
This glossary entry is educational and does not constitute legal advice. Always consult qualified legal counsel for jurisdiction-specific guidance.