OFAC is an office of the U.S. Treasury responsible for outlining and prosecuting trade sanctions to support national security and protect against targeted individuals and entities, including foreign countries or individuals engaging in organized international crime. According to the Federal Financial Institutions Examination Council (FFIEC), meeting OFAC compliance consists of blocking accounts and other property of specific countries, entities and individuals, as well as prohibiting or rejecting unlicensed trade and financial transactions.
Building your OFAC compliance program
In order to keep your organization on track to comply with OFAC regulations, your organization must establish and maintain a written program to meet compliance, taking into account the risks your business faces. For example, you need to consider the geographies in which you conduct business, customers you serve or transactions you typically complete to determine the level of sophistication your program should include. Once you understand these risks to your organization, OFAC calls for policies and procedures to be established for reviewing your transactions and the people involved.