GLOSSARY
OFAC (Office of Foreign Assets Control)
U.S. Treasury bureau that administers economic and trade sanctions programs.
The Office of Foreign Assets Control is a bureau within the U.S. Department of the Treasury responsible for administering and enforcing economic sanctions against targeted countries, entities, and individuals.
Why it matters
OFAC maintains the Specially Designated Nationals (SDN) List and operates country programs covering Russia, Iran, Cuba, North Korea, and others. Before shipping or financing a transaction, operators must screen counterparties against OFAC lists. The 50% rule means any entity owned 50% or more by a blocked person is also blocked, even if not explicitly listed.
Violations can result in civil penalties exceeding $300,000 per transaction. Operators should understand the difference between blocked transactions (which require a license to release) and rejected transactions (which can proceed after re-routing). The OFAC sanctions search tool at treasury.gov/ofac is the authoritative screening resource.