OFAC BLOCKED ASSETS
One of the powers granted to the President under the International Emergency Economic Powers Act (IEEPA) is the authority to:
'block during the pendency of an investigation ... any acquisition, holding, withholding, use, transfer, withdrawal, transportation, importation or exportation of, or dealing in, or exercising any right, power, or privilege with respect to, or transactions involving, any property in which any foreign country or a national thereof has any interest by any person, or with respect to any property, subject to the jurisdiction of the United States'
The President, through the IEEPA, uses this national emergency powers to confiscate the property of any person or entity that threatens national security, foreign policy, or the economy of the United States.
Blocked Property
When the OFAC blocks or 'freezes' property, it is essentially referring to frozen assets. Examples of property which may be blocked include:
- Bank accounts or funds of SDNs or in which a targeted government has an interest;
- Items, supplies, and goods directly or indirectly exported from the United States to a prohibited foreign country or to national thereof;
- Vessels, vehicles, or aircraft directly or indirectly exported from the United States that are now in a prohibited foreign country;
- Any funds or property belonging to an SDN or in which a designated foreign government or SDN has an interest (also include in this context below or U.S.-controlled entity).
OFAC Licensing and Compliance
A license is an authorization from OFAC to engage in a transaction that otherwise would be prohibited. There are two types of licenses: general licenses and specific licenses. A general license authorizes a particular type of transaction for a class of persons without the need to apply for a license.
License Applications
Each OFAC sanctions program has its own licensing procedures. In many instances, a general license will already exist authorizing the type of transaction you want to engage in. If a general license does not exist, you may need to apply for a specific license.
Current Prohibitions
Currently, OFAC-administered sanctions programs involve the following countries:
- Belarus
- Burma/Myanmar
- Central African Republic
- Cuba
- Democratic Republic of Congo
- Iran
- Iraq
- Lebanon
- Libya
- Mali
- Nicaragua
- North Korea
- Russia
- Somalia
- South Sudan
- Sudan
- Syria
- Ukraine
- Venezuela
- Yemen
Financial Institutions and Credit Bureaus
Banks, mortgage lenders, and other entities should obtain OFAC compliance software in order to maintain compliance with U.S. sanctions laws. Compliance software allows a company to screen customers and transactions for designated nationals or supporters of a targeted regime.
