What does the Office of Foreign Assets Control (OFAC) primarily administer?

The Office of Foreign Assets Control (OFAC) primarily administers economic sanctions and embargo programs. This agency operates under the U.S. Department of the Treasury and is responsible for enforcing U.S. economic and trade sanctions based on U.S. foreign policy and national security goals. These sanctions often target specific countries, regimes, individuals, and entities that the U.S. government considers to be threats to its national security or foreign policy interests. Through these programs, OFAC aims to mitigate risks associated with illegal activities, including terrorism and drug trafficking.

By managing sanctions, OFAC plays a crucial role in regulating international financial transactions and preventing financial support to those engaged in unlawful activities. Understanding OFAC's role is essential for professionals working within financial institutions and related industries, as compliance with sanctions is critical to avoiding legal penalties and maintaining operational integrity.