Federal (United States) · Agency FAQs
OFAC Frequently Asked Questions
1,402 sections
1,402 sections
- OFAC FAQ 1What is OFAC and what does it do?
- OFAC FAQ 1What is OFAC and what does it do? (version of 2023-03-22)Superseded
- OFAC FAQ 3What kinds of prohibitions does OFAC impose?
- OFAC FAQ 3What does one mean by the term "prohibited transactions"? (version of 2023-03-22)Superseded
- OFAC FAQ 4Are there exceptions to sanctions prohibitions? Are exceptions the same across sanctions programs?
- OFAC FAQ 4Are there exceptions to the prohibitions? (version of 2023-03-22)Superseded
- OFAC FAQ 5When screening for sanctions, how do I determine if I have a valid match to a name on one of OFAC’s lists?
- OFAC FAQ 5How do I determine if I have a valid OFAC match? (version of 2023-03-22)Superseded
- OFAC FAQ 5How do I determine if I have a valid OFAC match? (version of 2024-02-12)Superseded
- OFAC FAQ 5How do I determine if I have a valid OFAC match? (version of 2024-02-12)Superseded
- OFAC FAQ 5How do I determine if I have a valid OFAC match? (version of 2024-07-19)Superseded
- OFAC FAQ 5How do I determine if I have a valid OFAC match? (version of 2024-08-02)Superseded
- OFAC FAQ 5How do I determine if I have a valid OFAC match? (version of 2025-01-17)Superseded
- OFAC FAQ 6Where can I find specific details about a particular sanctions program?
- OFAC FAQ 6Where can I find the specific details about the embargoes? (version of 2023-03-22)Superseded
- OFAC FAQ 7If I want to engage in a transaction or activity prohibited by OFAC, how can I do so? Can I rely on a general or specific license to engage in a transaction involving a sanctioned jurisdiction or person?
- OFAC FAQ 7Can I get permission from OFAC to transact or trade with an embargoed country? (version of 2023-03-22)Superseded
- OFAC FAQ 9What does OFAC mean when it refers to "blocked" property? How does OFAC define “property”?
- OFAC FAQ 9What do you mean by "blocking?" (version of 2023-03-22)Superseded
- OFAC FAQ 10What jurisdictions or countries are sanctioned by the United States?
- OFAC FAQ 10What countries do I need to worry about in terms of U.S. sanctions? (version of 2023-03-22)Superseded
- OFAC FAQ 10What countries do I need to worry about in terms of U.S. sanctions? (version of 2024-05-09)Superseded
- OFAC FAQ 11Who must comply with OFAC sanctions?
- OFAC FAQ 11Who must comply with OFAC regulations? (version of 2023-03-22)Superseded
- OFAC FAQ 12How much are the penalties for violating OFAC sanctions regulations?
- OFAC FAQ 12How much are the fines for violating these regulations? (version of 2023-03-22)Superseded
- OFAC FAQ 13How can I report a possible violation of U.S. sanctions to OFAC? Will I receive "amnesty" if I report a possible violation to OFAC or if my failure to comply with U.S. sanctions was inadvertent?
- OFAC FAQ 13How can I report a possible violation of OFAC regulations by my company to OFAC? Will I receive "amnesty" if I report a possible violation to OFAC or if my failure to comply with OFAC regulations was inadvertent? (version of 2023-03-22)Superseded
- OFAC FAQ 13How can I report a possible violation of U.S. sanctions to OFAC? Will I receive "amnesty" if I report a possible violation to OFAC or if my failure to comply with U.S. sanctions was inadvertent? (version of 2024-08-21)Superseded
- OFAC FAQ 13I am aware of a possible violation of OFAC-administered sanctions. How can I report the possible violation to OFAC? Are there benefits to reporting this information to OFAC? (version of 2026-09-09)Superseded
- OFAC FAQ 14Can I regard previously issued and published opinion letters, regulatory interpretations, or other statements as guidance for my transactions?
- OFAC FAQ 15Can OFAC change its previously stated, non-published interpretation or opinion without first giving public notice?
- OFAC FAQ 18What is an SDN?
- OFAC FAQ 19How do I get a copy of the Specially Designated Nationals (SDN) List?
- OFAC FAQ 20How often is the Specially Designated Nationals (SDN) List updated?
- OFAC FAQ 21How do I know what specific changes have been made to OFAC's Specially Designated Nationals (SDN)List?
- OFAC FAQ 21How do I know what specific changes have been made to OFAC's Specially Designated Nationals (SDN)List? (version of 2023-03-22)Superseded
- OFAC FAQ 23What do I do if I have a match to the Specially Designated Nationals (SDN) or one of OFAC's other sanctions lists?
- OFAC FAQ 23What do I do if I have a match to the Specially Designated Nationals (SDN) or one of OFAC's other sanctions lists? (version of 2023-03-22)Superseded
- OFAC FAQ 25Does OFAC itself require that banks set up a certain type of compliance program?
- OFAC FAQ 27What do I need to do to comply? Do I have to buy expensive software?
- OFAC FAQ 27What do I need to do to comply? Do I have to buy expensive software? (version of 2023-03-22)Superseded
- OFAC FAQ 28How often do I need to scan my customer database against OFAC's sanctions lists?
- OFAC FAQ 29How do I setup a compliance program for my bank?
- OFAC FAQ 30How do I know if my compliance program is adequate?
- OFAC FAQ 31What are the features and benefits that banks should be looking for when selecting an OFAC compliance software package?
- OFAC FAQ 32How do I block an account or a funds transfer?
- OFAC FAQ 33How much interest do I have to pay on the blocked funds?
- OFAC FAQ 34Can my bank deduct service charges from the account?
- OFAC FAQ 35Do all OFAC programs involve blocking transactions?
- OFAC FAQ 36I understand blocking a transaction, but what is meant by rejecting a transaction? When should a transaction be rejected rather than blocked?
- OFAC FAQ 37My bank operates accounts for individuals living in Iran. OFAC has told us that these accounts cannot be operated. Does this mean that the accounts are blocked?
- OFAC FAQ 38Are U-Turn payments for Iran still permitted?
- OFAC FAQ 39What do I do if I have a blocked account that needs to be escheated to the state?
- OFAC FAQ 40If my financial institution receives a wire going to an embassy in a sanctioned country, can we process the transaction?
- OFAC FAQ 40If my financial institution receives a wire going to an embassy in a sanctioned country, can we process the transaction? (version of 2023-03-22)Superseded
- OFAC FAQ 41Should an institution tell its customer that it blocked their funds, and, if so, how does the institution explain it to them?
- OFAC FAQ 42What do I do if a person tries to open an account and the individual or entity’s name is on OFAC’s SDN List (or is otherwise a blocked person)? Do I open the account and then block the funds?
- OFAC FAQ 43Does a financial institution need to scan names against OFAC's list of targets upon account opening or can it wait for 24 hours to receive a report from its software vendor on whether or not there is a hit?
- OFAC FAQ 44Is there a dollar limit on which transactions are subject to OFAC regulations?
- OFAC FAQ 45Does my bank need to check the OFAC list when selling cashier's checks and money orders? In the case of cashier's checks, do I need to check both the purchaser and the payee? As a mortgage lender, do I need to check both the purchaser and the seller's name against the Specially Designated Nationals list? Do I need to check their names against all of OFAC's other sanctions lists?
- OFAC FAQ 46If a loan meets underwriting standards but is a true "hit" on OFAC's Specially Designated Nationals (SDN) list, what do we use as a denial reason on the adverse action notice?
- OFAC FAQ 47Through corporate giving programs, many banks contribute toward charities and other non-profits. To what extent does a bank need to review the recipients of these gifts or the principals of the charities?
- OFAC FAQ 48I just received an interdiction "alert." What do I do?
- OFAC FAQ 48I just received an interdiction "alert." What do I do? (version of 2023-03-22)Superseded
- OFAC FAQ 49If I reject or block a transaction, when do I have to report the action to OFAC? How do I submit the report?
- OFAC FAQ 49If I reject or block a transaction, when do I have to report the action to OFAC? How do I submit the report? (version of 2023-03-22)Superseded
- OFAC FAQ 50Is there a requirement for annual reporting of blocked property? Is there a required format?
- OFAC FAQ 50Is there a requirement for annual reporting of blocked property? Is there a required format? (version of 2023-03-22)Superseded
- OFAC FAQ 50Is there a requirement for annual reporting of blocked property? Is there a required format? (version of 2024-08-02)Superseded
- OFAC FAQ 51I believe OFAC may have blocked my funds. How can I get my funds released?
- OFAC FAQ 51How do I apply for a license to get my money unblocked? (version of 2023-03-22)Superseded
- OFAC FAQ 52Can U.S. financial institutions open correspondent accounts for Iraqi financial institutions, or process funds transfers to and from Iraqi financial institutions?
- OFAC FAQ 53How do I differentiate between an "inquiry" and a "payment instruction" when a customer wants to send a wire transfer to a sanctioned party or country?
- OFAC FAQ 54I have an account with a W-8 showing an address in Iran. Is the account automatically restricted?
- OFAC FAQ 56What is the difference between the Specially Designated Nationals (SDN) List and the Commerce Department's List of Denied Parties? Why can't they be integrated into one list? What about OFAC's other sanctions lists?
- OFAC FAQ 58Is OFAC likely to approve my license application? How long will it take?
- OFAC FAQ 58What are the chances that my application will be approved? (version of 2023-03-22)Superseded
- OFAC FAQ 59Do I need an OFAC license to donate goods to sanctioned jurisdictions?
- OFAC FAQ 59Do I need a registration number or license to donate goods? (version of 2023-03-22)Superseded
- OFAC FAQ 61State insurance statutes regulate an insurer's ability to withhold claim payments, cancel policies, or decline to enter into policies. In some cases, insurers must commit an ostensible violation of state insurance regulations to comply with OFAC regulations. Do OFAC regulations preempt state insurance regulations in this context?
- OFAC FAQ 61State insurance statutes regulate an insurer's ability to withhold claim payments, cancel policies or to decline to enter into policies. In some cases, insurers must commit an ostensible violation of state insurance regulations to comply with OFAC regulations. Does OFAC have a position as to whether OFAC regulations preempt state insurance regulations in this context? (version of 2023-03-22)Superseded
- OFAC FAQ 62What should an insurer do if an applicant for a policy, or the underlying insured activity, is subject to OFAC sanctions?
- OFAC FAQ 62At what point must an insurer check to determine whether an applicant for a policy is a Specially Designated National (SDN) or is on one of OFAC's other sanctions lists? (version of 2023-03-22)Superseded
- OFAC FAQ 63What should an insurer do if it discovers that a policyholder or a named beneficiary is added to OFAC's Specially Designated Nationals and Blocked Persons List (SDN List) or located in a jurisdiction subject to sanctions?
- OFAC FAQ 63What should an insurer do if it discovers that a policyholder is or becomes a Specially Designated National (SDN)--cancel the policy, void the policy ab initio, non-renew the policy, refuse to pay claims under the policy? Should the claim be paid under a policy issued to an SDN if the payment is to an innocent third-party (for example, the injured party in an automobile accident)? (version of 2023-03-22)Superseded
- OFAC FAQ 64If an insurance policy is held by the employer on behalf of its employees, is it permissible for an insurer to maintain the policy if it covers a blocked person on OFAC's Specially Designated Nationals and Blocked Persons List (SDN List), since the insurer is transacting only with the employer and not with the blocked person?
- OFAC FAQ 64A workers' compensation policy is with the employer, not the employee. Is it permissible for an insurer to maintain a workers compensation policy that would cover a person on the Specially Designated Nationals (SDN) List, since the insurer is not transacting business with the SDN, but only with his/her employer? (version of 2023-03-22)Superseded
- OFAC FAQ 65How frequently is an insurer expected to screen its databases for OFAC compliance?
- OFAC FAQ 65How frequently is an insurer expected to scrub its databases for OFAC compliance? (version of 2023-03-22)Superseded
- OFAC FAQ 68If a policyholder becomes a Specially Designated National (SDN) or blocked person after policy issuance, can the insurer notify the policyholder that the policy is now "blocked"?
- OFAC FAQ 68If my screening efforts uncover a policyholder who became a Specially Designated National after policy issuance, can I notify the policyholder that the policy is "blocked"? (version of 2023-03-22)Superseded
- OFAC FAQ 69When notifying a policyholder that their policy is "blocked" due to OFAC sanctions, may the insurer also instruct the policyholder not to send further premium payments or that the insurer will not accept additional premium payments under this account?
- OFAC FAQ 69In my letter to the policyholder whose policy is "blocked," may I also instruct the policyholder not to send any more premium or that we will not accept additional premium under this account? (version of 2023-03-22)Superseded
- OFAC FAQ 70What Is This OFAC Information On My Credit Report?
- OFAC FAQ 71How Can I Get The OFAC Alert Off My Credit Report?
- OFAC FAQ 72Can I send money to a sanctioned country using a third-country company’s website? Can I buy gifts for someone in a sanctioned country over the internet? The websites tell me that it’s ok because they themselves are not sanctioned parties.
- OFAC FAQ 73My company provides money remittance and account services via the Internet. Does OFAC have any compliance guidance for this type of business?
- OFAC FAQ 74What is a license?
- OFAC FAQ 74What is a license? (version of 2023-03-22)Superseded