OFAC
Office of Foreign Assets Control
OFAC — the US Treasury Office of Foreign Assets Control, which administers US sanctions and maintains the SDN list.
- What it is
- OFAC — the US Treasury’s Office of Foreign Assets Control
- What it does
- Administers US sanctions and keeps the SDN List
- Impact
- Global — because of the role of the dollar and the US financial system
- During checks
- Checking against OFAC databases is a mandatory compliance stage
- How to use it
- Check in advance that you are not on OFAC lists
In plain words
OFAC (Office of Foreign Assets Control) is the US Treasury Department’s office for the control of foreign assets. It is this body that develops, imposes and administers American sanctions: against countries, regimes, organisations and specific individuals. OFAC keeps the key sanctions lists, including the well-known SDN List (Specially Designated Nationals), and monitors compliance with US sanctions programmes.
Although OFAC is an American body, its influence is global. Because of the central role of the dollar in world settlements and the importance of the US financial system, banks, companies and organisations around the world follow OFAC sanctions and avoid dealing with persons on its lists — otherwise they risk losing access to dollar settlements and falling under secondary sanctions. That is why OFAC sanctions are among the most influential in the world.
In investment migration and bank compliance, checking against OFAC databases is a mandatory stage of any serious due diligence. A match with an OFAC sanctions list is a hard deal-breaker for citizenship and accounts. As with other checks, false name matches are possible and need to be cleared properly. We check clients against OFAC lists in advance and help resolve any questions.
Where OFAC matters
What matters about OFAC
- A US Treasury body
- Administers sanctions
- Keeps lists
- SDN List
- Sectoral sanctions
- Country programmes
- Global
- Because of the role of the dollar
- Secondary sanctions
- A mandatory check
- A match is a deal-breaker
- False matches are possible
How to take OFAC into account
- 01A preliminary OFAC check
- 02Sanctions screening
- 03Reviewing matches
- 04Clearing false positives
- 05A clean result
What you need to know
- OFAC is the US Treasury’s office for the control of assets
- Administers US sanctions and keeps the SDN List
- Its influence is global because of the role of the dollar
- Checking against OFAC is a mandatory compliance stage
- A match with OFAC sanctions is a hard deal-breaker
Common mistakes
- Assuming OFAC sanctions do not matter outside the US
- Not checking yourself against OFAC lists in advance
- Ignoring the risk of a false name match
- Trying to conceal sanctions status
- Underestimating the threat of secondary sanctions
What this means for a BRIDGES client
We check clients against OFAC lists in advance, understanding that the influence of these sanctions is global — almost every bank in the world takes them into account because of the role of the dollar. In the event of false name matches, we help settle the question with documents. That way the sanctions side of the check goes through cleanly, without unexpected obstacles.
Frequently asked questions
01 /What is OFAC?
The Office of Foreign Assets Control — the US Treasury’s office for the control of foreign assets. It administers US sanctions and keeps the key lists, including the SDN List.
02 /Do OFAC sanctions apply outside the US?
Their influence is global: because of the role of the dollar, banks and companies around the world follow OFAC sanctions, fearing the loss of dollar settlements and secondary sanctions.
03 /What lists does OFAC keep?
The main one is the SDN List (specially designated nationals), as well as sectoral sanctions and programmes against particular countries and regimes.
04 /What does a match with OFAC mean?
It is a hard deal-breaker: a bank will not open an account, and a reputable programme will not issue a passport to a person under OFAC sanctions. Sanctions status is a serious obstacle.
05 /Are there false matches?
Yes, on names, with a sanctioned person. They must be cleared properly with documents proving that it is not you — otherwise the process will be held up.
06 /How to check yourself in advance?
By checking against OFAC databases before applying. We carry out a preliminary check and, in the event of a false match, prepare explanatory documents.
See also
Read next
This material has undergone editorial review by BRIDGES.
Need a clean OFAC check?
We will check you against OFAC lists in advance and clear false matches — so that US sanctions do not become an unexpected barrier.