Frequently Asked Questions
The Office of Foreign Assets Control(OFAC) has undertaken an initiative to post on its website answers to questions of general applicability frequently asked by the public. The initiative is intended to be part of OFAC's commitment to regulatory transparency and customer service. OFAC is continuing to prepare answers to additional questions that are often asked and additional questions and answers will be posted periodically. Comments are welcome via the "E-mail OFAC" link on OFAC's homepage. It should be noted, however, that OFAC is unable to treat any information submitted concerning FAQs as confidential or proprietary to the submitter and no information submitted concerning FAQs will be treated as such.
The questions and answers highlight key issues and topics
relating to economic sanctions and the procedures and practices
of OFAC. They are intended only as general information to
assist persons subject to United States jurisdiction to comply
with legal requirements and to facilitate an understanding
of the scope and purposes of sanctions programs. It is very
important to note that U.S. businesses, individuals, and others
subject to OFAC jurisdiction must comply with the full legal
requirements of OFAC's programs which are set forth in the
applicable statutes, Executive Orders, and implementing regulations
found in Title 31 Chapter V of the Code of Federal Regulations
and in Federal Register documents that update the regulations.
The reader is further cautioned that specific facts may alter
an analysis and, because each program reflects unique foreign
policy and national security contexts, a particular answer
will not always be applicable to all programs or at all times.
For further assistance, call OFAC's Compliance Programs Division
at 202/622-2490 or OFAC's Licensing Division at 202/622-2480
or write to the Office of Foreign Assets Control, U.S. Department
of the Treasury, 1500 Pennsylvania Avenue, N.W., Washington,
D.C. 20220.
General Questions
Questions about Specially Designated Nationals (SDN)
Questions from Financial Institutions
Questions from Importers and Exporters
Questions related to NGO Registration Numbers
Questions from the Insurance Industry
For Consumers with OFAC Info Appearing on their Credit Report
Questions relating to Online Compliance
Licensing Questions
Technology Questions
General Questions
The Office of Foreign Assets Control administers
and enforces economic sanctions programs primarily against
countries and groups of individuals, such as terrorists and
narcotics traffickers. The sanctions can be either comprehensive
or selective, using the blocking of assets and trade restrictions
to accomplish foreign policy and national security goals.
[09-10-02]
The Treasury Department has a long history of
dealing with sanctions. Prior to the War of 1812, Secretary
of the Treasury Gallatin administered sanctions imposed against
Great Britain for the harassment of American sailors. In 1861,
during the Civil War, Congress passed a "Trading With the
Enemy Act," which prohibited transactions with the Confederacy,
called for the forfeiture of goods involved in such trade,
and provided a licensing regime under rules and regulations
administered by Treasury. The Trading With the Enemy Act of
1917 ("TWEA") made that Civil War legislation "modern" for
World War I. OFAC is the successor organization to the Office
of Foreign Funds Control (the "OFFC"), which was established
at the advent of World War II following the German invasion
of Norway in 1940. The OFFC's initial objective in acting
under TWEA was to prevent Nazi use of occupied countries'
holdings of foreign exchange and to prevent forced repatriation
of funds belonging to nationals of those countries. These
controls were later extended to protect assets of other invaded
countries. After the United States formally entered World
War II, the OFFC became the major American program of economic
warfare against the Axis powers, blocking enemy assets and
prohibiting foreign trade and financial transactions. Those
assets would also serve as a future source of war reparations.
The OFFC program was administered by the Secretary of the
Treasury throughout the war. After the cessation of hostilities,
most foreign property subject to protective blocking was gradually
released by licenses under the Foreign Funds Control Regulations.
Most enemy property was vested by the U.S. Government during
and immediately after the war. Responsibility for administering
the FFC Regulations was transferred to the Attorney General
(Office of Alien Property), effective October 1, 1948. All
matters relating to the World War II vesting program remain
at the Justice Department under the supervision of the Office
of Alien Property Custodian. OFAC itself was formally created
in December 1950, following the entry of China into the Korean
War, when President Truman declared a national emergency under
TWEA and blocked all Chinese and North Korean assets subject
to U.S. jurisdiction. [09-10-02]
Prohibited transactions are trade or financial
transactions and other dealings in which U.S. persons may
not engage unless authorized by OFAC or expressly exempted
by statute. Because each program is based on different foreign
policy and national security goals, prohibitions may vary
between programs. [09-10-02]
Yes. OFAC regulations often provide general
licenses authorizing the performance of certain categories
of transactions. In addition, in some circumstances, U.S.
law exempts certain transactions from embargoes. OFAC also
issues specific licenses on a case-by-case basis under certain
limited situations and conditions. Guidance on how to request
a specific license is found at 31 C.F.R. 501.802. [09-10-02]
Only after you’ve taken the following “due diligence” steps.
If you are calling about a wire transfer or other “live”
transaction:
1. Is the “hit” or “match” against OFAC’s SDN list or targeted
countries, or is it “hitting” for some other reason (i.e.,
“Control List” or “PEP,” “CIA,” “Non-Cooperative Countries
and Territories,” “Canadian Consolidated List (OSFI),” “World
Bank Debarred Parties,” “Blocked Officials File,” or “government
official of a designated country”), or can you not tell what
the “hit” is?
- If it’s hitting against OFAC’s SDN list or targeted countries,
continue to 2 below.
- If it’s hitting for some other reason, you should contact
the “keeper” of whichever other list the match is hitting
against. For questions about:
- The Denied Persons List and the Entities List, please
contact the Bureau of Industry and Security at the U.S.
Department of Commerce at 202-482-4811.
- The FBI’s Most Wanted List or any other FBI-issued watch
list, please contact the Federal Bureau of Investigation
(http://www.fbi.gov/contact/fo/fo.htm).
- The Debarred Parties list, please contact the Office
of Defense Trade Controls at the U.S. Department of State,
202-663-2700.
- The Bank Secrecy Act and the USA PATRIOT Act, please
contact the Financial Crimes Enforcement Network (FinCEN),
1-800-949-2732.
- If you are unsure whom to contact, please contact your
interdict software provider which told you there was a “hit.”
- If you can’t tell what the “hit” is, you should contact
your interdict software provider which told you there was
a “hit.”
2. Now that you’ve established that the hit is against OFAC’s
SDN list or targeted countries, you must evaluate the quality
of the hit. Compare the name in your transactions with the
name on the SDN list. Is the name in your transaction an individual
while the name on the SDN list is a vessel, organization or
company (or vice-versa)?
- If yes, you do not have a valid match.*
- If no, please continue to 3 below.
3. How much of the SDN’s name is matching against the name
in your transaction? Is just one of two or more names matching
(i.e., just the last name)?
- If yes, you do not have a valid match.*
- If no, please continue to 4 below.
4. Compare the complete SDN entry with all of the information
you have on the matching name in your transaction. An SDN
entry often will have, for example, a full name, address,
nationality, passport, tax ID or cedula number, place of birth,
date of birth, former names and aliases. Are you missing a
lot of this information for the name in your transaction?
- If yes, go back and get more information and then compare
your complete information against the SDN entry.
- If no, please continue to 5 below.
5. Are there a number of similarities or exact matches?
- If yes, please call the hotline at 1-800-540-6322.
- If no, you do not have a valid match.*
If you are calling about an account:
1. Is the “hit” or “match” against OFAC’s SDN list or targeted
countries, or is it “hitting” for some other reason (i.e.,
“Control List” or “PEP,” “CIA,” “Non-Cooperative Countries
and Territories,” “Canadian Consolidated List (OSFI),” “World
Bank Debarred Parties,” or “government official of a designated
country”), or can you not tell what the “hit” is?
- If it’s hitting against OFAC’s SDN list or targeted countries,
continue to 2 below.
- If it’s hitting for some other reason, you should contact
the “keeper” of whichever other list the match is hitting
against. For questions about:
- The Denied Persons List and the Entities List, please
contact the Bureau of Industry and Security at the U.S.
Department of Commerce at 202-482-4811.
- The FBI’s Most Wanted List or any other FBI-issued watch
list, please contact the Federal Bureau of Investigation
(http://www.fbi.gov/contact/fo/fo.htm).
- The Debarred Parties list, please contact the Office
of Defense Trade Controls at the U.S. Department of State,
202-663-2700.
- The Bank Secrecy Act and the USA PATRIOT Act, please
contact the Financial Crimes Enforcement Network (FinCEN),
1-800-949-2732.
- If you are unsure whom to contact, you should contact
your interdict software provider which told you there was
a “hit.”
- If you can’t tell what the “hit” is, you should contact
your interdict software provider which told you there was
a “hit.”
2. Now that you’ve established that the hit is against OFAC’s
SDN list or targeted countries, you must evaluate the quality
of the hit. Compare the name of your accountholder with the
name on the SDN list. Is the name of your accountholder an
individual while the name on the SDN list is a vessel, organization
or company (or vice-versa)?
- If yes, you do not have a valid match.*
- If no, please continue to 3 below.
3. How much of the SDN’s name is matching against the name
of your accountholder? Is just one of two or more names matching
(i.e., just the last name)?
- If yes, you do not have a valid match.*
- If no, please continue to 4 below.
4. Compare the complete SDN entry with all of the information
you have on the matching name of your accountholder. An SDN
entry often will have, for example, a full name, address,
nationality, passport, tax ID or cedula number, place of birth,
date of birth, former names and aliases. Are you missing a
lot of this information for the name of your accountholder?
- If yes, go back and get more information and then compare
your complete information against the SDN entry.
- If no, please continue to 5 below.
5. Are there a number of similarities or exact matches?
- If yes, please call the hotline at 1-800-540-6322.
- If no, you do not have a valid match.*
* If you have reason to know or believe that processing this
transfer or operating this account would violate any of the
Regulations, you must call the hotline and explain this knowledge
or belief.
[02-12-03]
A summary description of each particular embargo
or sanctions program may be found in the Sanctions
Program and Country Summaries area and in the Regulations
by Industry area on OFAC's website. The text of Legal
documents may be found in the Legal
Documents area of OFAC's website which contains the text
of 31 C.F.R. Chapter V and appropriate amendments to that
Chapter which have appeared in the Federal Register. [09-10-02]
OFAC usually has the authority by means of a
specific license to permit a person or entity to engage in
a transaction which otherwise would be prohibited. In some
cases, however, legislation may restrict that authority. [09-10-02]
In some situations, authority to engage in certain
transactions is provided by means of a general license. In
instances where a general license does not exist, a written
request for a specific license must be filed with OFAC. The
request must conform to the procedures set out in the regulations
pertaining to the particular sanctions program. Generally,
application guidelines and requirements must be strictly followed,
and all necessary information must be included in the application
in order for OFAC to consider an application. For an explanation
about the difference between a general and a specific license
as well as answers to other licensing questions, see the licensing
questions link. [09-10-02]
Another word for it is "freezing." It is simply
a way of controlling targeted property. Title to the blocked
property remains with the target, but the exercise of powers
and privileges normally associated with ownership is prohibited
without authorization from OFAC. Blocking immediately imposes
an across-the-board prohibition against transfers or dealings
of any kind with regard to the property. [09-10-02]
OFAC administers a number of U.S. economic sanctions
and embargoes that target geographic regions and governments
(such as Cuba, Iran, Iraq, Libya, North Korea, Sudan, Liberia,
Sierra Leone, the UNITA faction in Angola, Syria and Burma
[Myanmar]) as well as other programs programs targeting individuals
or entities that could be anywhere (such as narcotics traffickers,
named terrorists, Foreign Terrorist Organizations, designated
foreign persons associated with Slobodan Milosevic or who
threaten international stabilization efforts in the Western
Balkans, and designated foreign persons who have engaged in
activities related to the proliferation of weapons of mass
destruction). In addition to targeted countries, it is very
important to note that OFAC publishes a list of Specially
Designated Nationals and Blocked Persons ("SDN list") which
includes over 3,500 names of companies and individuals who
are connected with the sanctions targets and are located throughout
the world (with addresses listed in 112 countries as of 09/2002).
A number of the named individuals and entities are known to
move from country to country and may end up in locations where
they would be least expected. U.S. persons are prohibited
from dealing with SDNs wherever they are located and all SDN
assets are blocked. Because OFAC's programs are dynamic and
constantly changing, it is very important to check OFAC's
website on a regular basis to ensure that your SDN list is
current and you have complete information regarding current
restrictions affecting countries and parties with which you
plan to do business. [09-10-02]
All U.S. persons must comply with OFAC regulations,
including all U.S. citizens and permanent resident aliens
regardless of where they are located, all persons and entities
within the United States, all U.S. incorporated entities and
their foreign branches. In the cases of certain programs,
such as those regarding Cuba and North Korea, all foreign
subsidiaries owned or controlled by U.S. companies also must
comply. Certain programs also require foreign persons in possession
of U.S. origin goods to comply. [09-10-02]
The fines for violations can be substantial.
Depending on the program, criminal penalties can include fines
ranging from $50,000 to $10,000,000 and imprisonment ranging
from 10 to 30 years for willful violations. Depending on the
program, civil penalties range from $11,000 to $1,000,000
for each violation. [09-10-02]
Yes, a company can and is encouraged to voluntarily
disclose a past violation. Self-disclosure is considered a
mitigating factor by OFAC in Civil Penalty proceedings. A
self-disclosure should be in the form of a detailed letter,
with any supporting documentation, to R. Richard Newcomb,
Director, Office of Foreign Assets Control, U.S. Department
of the Treasury, 1500 Pennsylvania Ave., N.W., Washington,
DC 20220. OFAC does not have an "amnesty" program. The ramifications
of non-compliance, inadvertent or otherwise, can jeopardize
critical foreign policy and national security goals. OFAC
does, however, review the totality of the circumstances surrounding
any violation, including the quality of a company's OFAC compliance
program. [09-10-02]
Great care should be taken when placing reliance
on such materials to ensure that the transactions in question
fully conform to the letter and spirit of the published materials
and that the materials have not been superceded. [09-10-02]
Yes. OFAC, therefore, strongly encourages parties
to exercise due diligence when their business activities may
touch on an OFAC-administered program and to contact OFAC
if they have any questions about their transactions. [09-10-02]
The explanation is at the link "Automating
OFAC Compliance". Financial operations bulletins are geared
toward the financial operations community, while "What's New"
notices are geared toward the general public (including exporters
and importers, practicing attorneys, and researchers). Generally
speaking, those in the operations areas of banks, brokerage
houses, and other financial service providers do not require
the level of detail and wealth of information provided in
notices to the general public. Instead, they are primarily
interested in changes directly impacting their day-to-day
operations, such as updates to OFAC's listing Specially Designated
Nationals and Blocked Persons. All "What's New" notices to
the general public also contain information from OFAC's financial
operations bulletins. It is not unusual for the date listed
for a What's New notice to be later than the date listed for
the latest Financial Operations Bulletin. [09-10-02]
Individual "What's New" notices are date-specific.
There is, however, at the bottom of each calendar page following
the Recent
OFAC Actions link a separate cumulative file for each
year--2002, 2001, and 2000. [09-10-02]
Questions about Specially Designated Nationals (SDNs)
As part of its enforcement efforts, OFAC publishes
a list of individuals and companies owned or controlled by,
or acting for or on behalf of, targeted countries. It also
lists individuals, groups, and entities, such as terrorists
and narcotics traffickers designated under programs that are
not country-specific. Collectively, such individuals and companies
are called "Specially Designated Nationals" or "SDNs." Their
assets are blocked and U.S. persons are generally prohibited
from dealing with them. [09-10-02]
The best way to get the list is from OFAC's
website. The list is disseminated in a number of different
formats, including fixed field/delimited files that can be
integrated into databases. [09-10-02]
The SDN list is frequently updated. There is
no predetermined timetable, but rather names are added or
removed as necessary and appropriate. Please see the Resources
link titled "Automating
OFAC Compliance" for suggestions on how to keep constantly
up-to-date. [09-10-02]
All changes for the current calendar year are
cumulatively available in a .PDF
file and in an ASCII
version. Cumulative changes for prior years back to 1994
are also available in ASCII format by following this link.
The same link will take you to a *.PDF version of the file
for calendar year 2001. The calendar year 2002 *.PDF file
and future calendar year *.PDF files will be archived at that
link. [09-10-02]
OFAC has long maintained such a list. The file
is available for downloading by clicking on the DOS or Windows
Delimited SDN List links on OFAC's Website. The file is
contained within those self-extracting archives and is called
ctry_list.txt. It is important to understand that many SDN
individuals and entities may operate in countries other than
those in which they are based. The relevant regulations prohibit
transactions with and/or block the property of SDNs wherever
they are located. [09-10-02]
If you have checked a name manually or by using
software and find a match, you should do a little more research.
Is it an exact name match, or very close? Is your customer
located in the same general area as the SDN? If not, it may
be a "false hit." If there are many similarities, contact
OFAC's "hotline" at 1-800-540-6322 for verification. If your
"hit" concerns an in-process wire transfer, you
may prefer to e-mail
your question to OFAC. Unless a transaction involves an
exact match, it is recommended that you contact OFAC Compliance
before actually blocking assets. [09-10-02]
The Control List was developed by the law enforcement
community in response to the events of September 11. It is
separate from the OFAC's SDN list and is not disseminated
by OFAC. If you have received a copy of this list, you should
follow the instructions received with it. [09-10-02]
Questions from Financial Institutions
No. There is no single compliance program suitable
for every financial institution. OFAC is not itself a bank
regulator; its basic requirement is that financial institutions
not violate the laws that it administers. Financial institutions
should check with their regulators regarding the suitability
of specific programs to their unique situations. [09-10-02]
The Starter Kit is comprised of the SDN
list, the brochure for the industry you represent (financial,
travel/tourism, insurance, export/import, or securities),
and any articles that appear to be of interest based on your specific needs
or interest. These documents can be obtained from OFAC's website
or from OFAC's fax-on-demand service (202/622-0077). [09-18-02]
This is primarily a question for your regulator.
What constitutes an adequate compliance program depends in
large part on who your customers are and what kinds of business
you do. Certain areas of bank operations, such as international
wire transfers and trade finance, are at a higher risk than
others. There are numerous interdiction software packages
that are commercially available. They vary considerably in
cost and capabilities. If your bank feels it needs to invest
in software in its attempt to comply with OFAC regulations,
OFAC recommends that you talk to your counterparts in other
banks about the systems they have in place and contact vendors
for an assessment of your needs. It should be noted that *.TXT
and *.PDF versions of OFAC's SDN list can be manually scanned;
OFAC's *.TXT list can also be queried using standard word
processing software such as Microsoft Word or Corel's WordPerfect.
[09-10-02]
The frequency of running an OFAC scan must be
guided by your internal bank policy and procedures. Keep in
mind, however, that if your bank fails to identify and block
a target account (of a terrorist, for example), there could
be "real world" consequences such as a transfer of funds or
other valuable property to an SDN, an enforcement action against
your bank, and negative publicity. [09-10-02]
There is no prepackaged compliance program that
fits the needs of every bank. Banks, obviously, range in size
from small to some of the largest institutions in the world.
A good starting point is to go to the OFAC website and look
under "Regulations
by Industry." Then read the brochure
for the Financial Community. This brochure provides insight
as to how your particular bank could set up a compliance program.
There are also a number of articles written for banking industry
publications available on OFAC's website. See, for example, OFAC
Primer or Community Banks. It may be helpful to contact your counterparts
in other banks to see what they are doing and talk to your
regulator. [09-10-02]
There are a wide variety of software packages
available to the financial community. The size and needs of
each institution help to determine what to look for in a package.
Some packages are used to interdict sanctioned countries and
SDN names in wire transfers, while others are used to check
the names of new customers; other packages also filter the
names of all accountholders. One suggestion for finding the
right software for your bank is to research what your peer
banks are using and determine if the software package is working
for them. Your bank also could talk to a variety of software
vendors who can easily be located by doing an Internet search.
[09-10-02]
Once it has been determined that funds need
to be blocked, they must be placed into an interest-bearing
account on your books from which only OFAC-authorized debits
may be made. The blocking also must be reported to OFAC Compliance
within 10 business days. Some banks have opted to open separate
accounts for each blocked transaction, while others have opted
for omnibus accounts titled, for example, "Blocked Libyan
Funds." Either method is satisfactory, so long as there is
an audit trail which will allow specific funds to be unblocked
with interest at any point in the future. [09-10-02]
OFAC regulations require that funds earn interest
at a commercially reasonable rate, i.e., at a rate currently
offered to other depositors on deposits or instruments of
comparable size and maturity. [09-10-02]
Generally yes. In most cases (excluding Iraq,
for instance) OFAC regulations contain provisions to allow
a bank to debit blocked accounts for normal service charges,
which are described in each set of regulations. The charges
must be in accordance with a published rate schedule for the
type of account in which the funds are maintained. [09-10-02]
No. OFAC regulations are tailored to further
the requirements and purposes of specific Executive Orders
or statutes which provide the basic outline of each program.
In some cases, the President has determined that a comprehensive
asset freeze is appropriate, and in others the President has
determined that more limited restrictions (for example, import
bans) are in order. The individual program brochures outline
the restrictions for each program. [09-10-02]
In some cases, an underlying transaction may
be prohibited, but there is no blockable interest in the transaction.
In these cases, the transaction is simply rejected, or not
processed. For example, a U.S. bank would have to reject a
wire transfer between two third-country companies (non-SDNs)
involving an export to a non-SDN company in Sudan. Since there
is no interest of the Government of Sudan or an SDN, there
is no blockable interest in the funds. The U.S. bank cannot
process the transaction because that would constitute a transaction
in support of a commercial activity in Sudan, which is prohibited
by the Sudanese Sanctions Regulations. Similarly, a U.S. bank
could not be involved in the financing of a prohibited transaction.
A U.S. bank cannot so much as advise a letter of credit if
the underlying transaction is in violation of OFAC regulations.
Please note that the Iranian Transactions Regulations contain
no blocking provisions.
The following examples may help illustrate which transactions
should be blocked and which should be rejected.
• A U.S. bank interdicts a commercial payment destined
for the account of XYZ Import-Export Co. at the Bank of Khartoum
in Khartoum, Sudan. The Bank of Khartoum is wholly-owned by
the Government of Sudan and, accordingly, is a Specially Designated
National of Sudan. This payment must be blocked.
• A U.S. bank interdicts a commercial payment destined for the account
of ABC Import-Export at Sudanese French Bank, Khartoum, Sudan.
Unlike the Bank of Khartoum, Sudanese French Bank, Khartoum
is a private sector entity so there is no blockable interest
in this payment. However, processing the payment would mean
facilitating trade with Sudan and providing a service in support
of a commercial transaction in Sudan, therefore the U.S. bank
must reject the payment.
• A U.S. bank interdicts a commercial payment originating
from a commercial account on its books and destined for the
account of the Tehran Computer Corporation at a French bank
in Paris. The beneficiary’s address confirms that it’s
a company in Iran. This payment must be rejected by the U.S.
bank because of the prohibitions against facilitating trade
with Iran. The payment is not a “U-Turn” because
it was not initiated by a foreign bank.
• A U.S. bank interdicts a commercial payment from
a corporate account on its books destined for the account
of the French Computer Corporation at Bank Melli, in Paris
through a correspondent account of Bank Melli on the books
of a British bank. The beneficiary’s address confirms
that it’s a company in France. However, this payment
must be rejected by the U.S. bank because Bank Melli is owned
by the Iranian government, and processing the payment would
be facilitating trade with Iran.
• A U.S. bank interdicts a commercial payment destined
for the account of the French Computer Corporation at Bank
Melli, in Paris on the books of a U.S. bank. The beneficiary’s
address confirms that it’s a company in France. However,
this payment must be rejected by the U.S. bank because the
account of Bank Melli is an “Iranian account”
on the books of a U.S. bank and cannot be operated.
• A U.S. bank interdicts an unlicensed commercial payment
going to a private-sector entity in Cuba. Under the Cuban
Assets Control Regulations, all property and property interests
of Cuban nationals – defined to include any person or
entity in Cuba - are blocked. As a result, this payment must
be blocked.
Rejected and blocked funds transfers must be reported to
OFAC within 10 days. Questions about whether a transaction
should be blocked or rejected should be directed to OFAC Compliance.
[03-12-03]
No, the accounts are restricted. The Iranian
sanctions prohibit the export of goods or services to Iran.
By operating an account for an individual or company in Iran,
the bank would be exporting services to that person or entity
in violation of the Iranian Transactions Regulations. The
accounts, however, are not blocked. The account holder can
close the account and have the funds transferred to his or
her account outside the United States. [09-10-02]
A "U-Turn" payment involving Iran is where U.S.
dollar transactions involving Iran are cleared through a U.S.
bank. Generally speaking, there must be a third-country bank
on both sides of a transaction to qualify as a "U-Turn." For
example, Bank Melli Iran can send funds from its account at
a German bank through the German bank's correspondent in New
York to an Italian bank to pay for goods purchased from Italy.
The originating and beneficiary banks may not be U.S. banks.
[09-10-02]
You need to discuss this with your state authorities
and with OFAC. For instance, the state of New York has a license
to escheat blocked funds, pending OFAC approval of each transfer.
Banks in New York should contact the State Banking Department
for instructions on how to proceed. Banks in other states
should contact OFAC directly for instructions on how to proceed.
[09-10-02]
This depends on the program. If you have a payment
involving an embassy in a targeted country, please contact
OFAC Compliance for directions (1-800-540-6322). [09-10-02]
An institution may notify its customer that
it has blocked funds in accordance with OFAC's instructions.
The customer has the right to apply for the unblocking and
release of the funds. Information on OFAC's licensing procedures
is available on the website. For a copy of the *.PDF application
form for the unblocking of funds transfers (TD F 90-22.54),
please direct your customer to this link.
[09-10-02]
A U.S. bank cannot open an account for a person
named on the SDN list. This is a prohibited service. However,
you should pay careful attention to be sure the person trying
to open the account is the same person as the one named on
OFAC's list. In many cases you may get a "false positive,"
where the name is similar to a target's name, but the rest
of the information provided by the applicant does not match
the descriptor information on OFAC's SDN list. If the bank
does come into the possession or control of any property in
which a blocked person has an interest, it is obligated to
block that property. In other words, if you receive an application
to open an account from a person who matches the information
on the SDN list, together with an opening deposit, you are
obligated to block the funds. The same is true for other banking
transactions. If, for example, a customer asks if he or she
is allowed to send money to a relative's account with Rafidain
Bank in Iraq, the bank can say "no, that's illegal." If, on
the other hand, a bank receives instructions from its customer
to debit his or her account and send the funds to Rafidain
Bank, the bank must act on the instructions by blocking the
funds which contain a future interest of the Iraqi SDN bank.
You might think of the analogy of a bouncing ball. Once the
ball starts moving, you must stop it if it comes into your
possession. [09-10-02]
There is no legal or regulatory requirement
to use software or to scan. There is a requirement, however,
not to violate the law by doing business with a target or
failing to block property. OFAC realizes that financial institutions
use software that does not always provide an instantaneous
response and may require some analysis to determine if a customer
is indeed an SDN. The important thing is not to conclude transactions
before the analysis is completed. [09-10-02]
There is no minimum or maximum amount subject
to the regulations. [09-10-02]
Every transaction that a U.S. financial institution
engages in is subject to OFAC regulations. If a bank knows
or has reason to know that a target is party to a transaction,
the bank's processing of the transaction would be unlawful.
[09-10-02]
If you have confirmed with OFAC that you have
a "good hit," there is no reason not to explain that to the
customer. The customer can contact OFAC directly for further
information. [09-10-02]
Donations to charitable institutions must be
handled as any other financial transaction. The donating bank
or institution should crosscheck the recipient names against
OFAC's SDN list and assure that the donations are in compliance
with OFAC sanctions programs. [09-10-02]
When your interdiction software or accountholder
checking service shows a potential match, OFAC recommends
that you do an initial analysis prior to contacting OFAC.
If you have a reasonably close match to a name on the SDN
list and your customer is located in the same vicinity as
the SDN, feel free to contact OFAC Compliance. Computer software
can only deal with letters and numbers. It will inevitably
flag some transactions that are not actually OFAC targets.
This is where human intervention becomes critical and some
hands-on research may be necessary. Questions that ought be
asked by a Compliance Officer before calling OFAC include:
Is it an exact name match, or very close? Is the suspect party
located in the same general area as the SDN? If there are
many similarities, then contact OFAC for verification. Unless
you have an exact match or are otherwise privy to information
indicating that the hit is a target, it is recommended that
you not actually block a transaction without discussing the
matter with OFAC. [09-10-02]
At the moment, OFAC requires that all blocking
and reject reports be submitted in writing. Optional reporting
forms are available at this link.
Reports may be mailed in or faxed to OFAC Compliance at 202-622-2426.
Blocking and reject reports must contain a copy of the original
transfer instructions. OFAC is currently working with the
financial community on a pilot project to permit the filing
of such reports electronically. If you wish to participate
in the pilot project, please contact OFAC Compliance. [09-10-02]
Yes. A report of blocked property is to be submitted
annually by September 30 to OFAC Compliance, Department of
the Treasury, Washington, D.C., 20220. The standardized form
can be accessed by visiting this link. If you wish to use a different format, please contact OFAC's
Blocked Assets Division at 202-622-2440. [09-10-02]
With respect to blocked funds transfers, you
will need to submit an application
for the release of blocked funds form which is available on OFAC's website under "Forms." You should print this form, complete the required information, attach payment instructions, and mail it to:
Office of Foreign Assets Control
U.S. Department of the Treasury
Treasury Annex
1500 Pennsylvania Avenue, NW
Washington, DC 20220
Attn: Licensing Division
OFAC requests that the application form be submitted in triplicate.
The form must be sent by hard copy - fax copies will not be
accepted. It is extremely important that the underlying transaction
be described in detail and copies of supporting documentation
be included in the package.
[09-10-02]
Yes, U.S. financial institutions are authorized to open correspondent
accounts for, and process funds transfer to or on behalf of
Iraqi financial institutions.
[07-27-04]
In those programs with blocking provisions, OFAC's regulations
block all "property" in which a target has an interest.
The term "property" is very broadly defined, including
present, future or contingent interests. In the case of a
wire transfer, the bank will be holding blocked property upon
the receipt of concrete instructions from its customer to
send the funds. In this case, the funds must be blocked and
reported to OFAC within ten days. If, on the other hand, a
customer simply asks "Can I send money to Cuba?"
there is no blockable interest in the inquiry and the bank
can answer the question or direct them to OFAC. The same logic
applies to cases where the transaction would be required to
be rejected under OFAC regulations. There is not technically
a "reject" item until the bank receives instructions
from its customer to debit its account and send the funds.
[09-17-04]
Questions from Exporters & Importers
Yes. The number is 1-800-540-6322 (local: 202-622-2490).
Staff includes individuals with extensive experience working
at the Trade Information Center at Commerce headquarters in
Washington, D.C., running workshops on international trade,
and even assisting with articles in Export America magazine.
[09-10-02]
Specially Designated Nationals and Blocked Persons
(SDNs) are individuals and entities located throughout the
world that are blocked pursuant to the various sanctions programs
administered by OFAC. SDNs can be front companies, parastatal
entities, or individuals determined to be owned or controlled
by, or acting for or on behalf of, targeted countries or groups.
They also can be specially identified individuals such as
terrorists or narcotics traffickers. U.S. persons are prohibited
from engaging in any transactions with SDNs and must block
any property in their possession or under their control in
which an SDN has an interest. SDNs are designated primarily
under the statutory authority of the Trading With the Enemy
Act, the International Emergency Economic Powers Act, the
Anti-Terrorism and Effective Death Penalty Act and the Foreign
Narcotics Kingpin Designation Act. Implementing regulations
can be found in Chapter V, Title 31 of the U.S. Code of Federal
Regulations.
The Bureau of Industry and Security ("BIS")
of the U.S. Department of Commerce maintains separate lists
for the purposes of the programs that it administers (including
the Denied Persons List and the Entity List). The Denied Persons
List consists of individuals and companies that have been
denied export and re-export privileges by BIS. The Entity
List consists of foreign end users who pose an unacceptable
risk of diverting U.S. exports and the technology they contain
to alternate destinations for the development of weapons of
mass destruction. Accordingly, U.S. exports to those entities
may require a license. Authority for the Denied Persons List
and the Entity List can be found in Title 15, Part 764, Supplement
No. 2 and Title 15, Part 744, Supplement No.4 of the U.S.
Code of Federal Regulations, respectively.
The foreign policy objectives and legal requirements
of the SDN list are significantly different from those of
the BIS lists. The Commerce lists do not involve a full trade
embargo of all goods and services nor do they require U.S.
persons to block property. They are concerned with issues
of export privileges and export licensing. The unique goals
of the OFAC and BIS programs preclude the creation of a unified
"master list." [09-10-02]
Questions related to NGO Registration Numbers
Pursuant to 31 CFR §538.521, registration numbers
may be issued to nongovernmental organizations involved in
humanitarian or religious activities in Sudan. Specific guidelines
for NGO registration  can be found on OFAC's website
under "Guidelines and Information for Sudan" under "Sanctions
Programs and Country Summaries." This document outlines the
necessary steps for becoming a registered NGO. These guidelines
can also be found in 31 CFR §501.801(c). Providing all of
the required information will help to expedite the registration
process. [09-10-02]
Pursuant to 31 CFR §575.527, registration
numbers may be issued on a case-by-case basis for the registration
of nongovernmental organizations involved in humanitarian
activities in areas of Iraq not controlled by the Government
of Iraq. Specific guidelines for NGO registration can be found
on our website under “Guidelines and Information for
Iraq” under “Sanctions Programs and Country Summaries.”
This document outlines the necessary steps for becoming a
registered NGO for Iraq. The guidelines can also be found
at 31 CFR §501.801(c). Providing all of the required
information will help to expedite the registration process.[03-12-03]
Each application is reviewed on a case-by-case
basis and often requires interagency consultation. Although
we cannot predict how long this review might take, following
existing application guidelines will help to expedite your
determination. [09-10-02]
Most OFAC sanctions programs provide exemptions
to their prohibitions for certain donated goods, such as articles
to relieve human suffering. This is not the case for all programs,
however. If you wish to donate food to Iraq, for example,
you must apply for a specific license. You should refer to
the legal section of OFAC's website for the regulations applicable
to the specific target or target country of your donation.
[09-10-02]
The Iranian Transactions Regulations, 31 CFR Part 560, allow
certain transactions in Iran that are directly incident and
essential to registered or licensed NGOs’ authorized
activities in areas of Iraq not controlled by the Government
of Iraq. These transactions include the export of goods and
services not controlled under the Department of Commerce’s
Export Administration Regulation for exportation or re-exportation
to Iran or controlled on the United States Munitions List,
as well as activities necessary to conduct survey or assessment
missions in Iran related to the planning and preparation for
the provision of humanitarian support to the Iraqi people.
See OFAC’s brochure on the Iran program or the Iranian
Transactions Regulations for specific requirements and details.
[03-12-03]
Questions from the Insurance Industry
OFAC's regulations under the Trading with the
Enemy Act and the International Emergency Economic Powers
Act are based on Presidential declarations of national emergency
and preempt state insurance regulations. OFAC regulations
are not federal insurance regulations, they are regulations
promulgated under the President's exercise of foreign-affairs
and national emergency powers. [09-10-02]
If you receive an application from an SDN for
a policy, you are under an obligation not to issue the policy.
Remember that when you are insuring someone, you are providing
a service to that person. You are not allowed to provide any
services to an SDN. If the SDN sends a deposit along with
the application, you must block the payment. [09-10-02]
The first thing an insurance company should
do upon discovery of such a policy is to contact OFAC Compliance.
OFAC will work with you on the specifics of the case. It is
possible a license could be issued to allow the receipt of
premium payments to keep the policy in force. Although it
is unlikely that a payment would be licensed to an SDN, it
is possible that a payment would be allowed to an innocent
third party. The important thing to remember is that the policy
itself is a blocked contract and all dealings with it must
involve OFAC. [09-10-02]
If an insurer knows that a person covered under
the group policy is an SDN, that person’s coverage is
blocked, and if he or she makes a claim under the policy,
the claim cannot be paid. If an insurer does not know the
names of those covered under a group policy, it would have
no reason to know it needed to block anything unless and until
an SDN files a claim under that policy. At that point its
blocking requirement would kick in.
[03-12-03]
That is up to your firm and your regulator.
Remember that a critical aspect of the designation of an SDN
is that the SDN's assets must be frozen immediately, before
they can be removed from U.S. jurisdiction. If a firm only
scrubs its database quarterly, it could be 3 months too late
in freezing targeted assets. The SDN list may be updated as
frequently as a few times a week or as rarely as once in six
months. See Automating
Compliance on OFAC's website for suggestions on how to
keep current. [09-10-02]
That’s up to your firm and your regulators. Conducting
screening only before policy issuance is critical but would
not likely achieve your desired level of compliance. After
the policy issuance, the U.S. Government may designate an
existing policyholder or a named beneficiary as a Specially
Designated National or Blocked Person (“SDN”),
or it may expand sanctions with respect to a particular country,
or impose sanctions against a new country. If an existing
policyholder or a named beneficiary became an SDN or otherwise
subject to U.S. sanctions, the insurer may be required to
“block” the policy, report such blocking to OFAC
within 10 days of the SDN designation, place any future premiums
into a blocked, interest-bearing account at a U.S. financial
institution, and seek an OFAC license before making any payments
under the policy. Consequently, routine screening of all policies
in force against OFAC’s SDN list, as frequently updated,
would enable the insurer to comply with the applicable OFAC
regulatory requirements. It also is important to screen the
policyholder and beneficiary prior to paying a claim. [05-01-03]
In general, an insurance policy is considered “property”
and a beneficiary’s interest in the policy is considered
an “interest in property” that may require blocking
under the applicable regulations. The Cuban Assets Control
Regulations, however, contain a general license that deals
with transactions involving blocked life insurance policies.
31 C.F.R. § 515.526. In this case, the only blocked interest
is that of a beneficiary, so the general license would authorize
the insurer to accept premium payments and interest on policy
loans as well as to pay loans to the insured or process the
insured’s request for a change of beneficiary. Also,
the insurer would be authorized under the general license
to deduct premiums from cash surrender value, if any, or accumulate
dividends or otherwise increase cash surrender value on the
books of the insurer, pursuant to the terms of the policy.
However, the insurer usually cannot pay an entire claim (the
face amount of the policy) to the beneficiary without a specific
license from OFAC. Recent amendments to the Cuba regulations
authorize by general license remittances to a Cuban beneficiary
of up to $300 per quarter from a blocked account at a U.S.
banking institution if the funds in that account were deposited
there as a result of a payment from a life insurance policy
triggered by the death of the policy holder. If you have a
blocked policy, you should seek legal advice or contact OFAC
for further guidance regarding the handling of that particular
account. [05-01-03]
Yes, the insurer may notify the policyholder that the policy
is blocked, without obtaining a specific license from OFAC.
[05-01-03]
The insurer may instruct the policyholder as follows: “If
you send any more premium, we are required under applicable
U.S. laws and regulations to place such funds in a blocked
account. If you have any questions, please contact the U.S.
Department of Treasury’s Office of Foreign Assets Control.”
[05-01-03]
Consumer Credit Report
What Is This OFAC Information On My
Credit Report?
Credit bureaus and agencies in particular have
adopted new measures to ensure compliance with OFAC regulations.
Before issuing a credit report, they use special "interdiction"
software developed by the private sector to determine if a
credit applicant is on the SDN list. This software matches
the credit applicant's name and other information to the individuals
on the SDN list. If there is a potential match, the credit
bureaus are placing a "red flag" or alert on the report. This
does not necessarily mean that someone is illegally using
your social security number or that you have bad credit. It
is merely a reminder to the person checking your credit that
he or she should verify whether you are the individual on
the SDN list by comparing your information to the OFAC information.
If you are not the individual on the SDN list, the person
checking your credit should disregard the OFAC alert, and
there is no need to contact OFAC. However, if the person checking
your credit believes you are the person on the SDN list, then
he or she should call the OFAC Hotline to verify and report
it.
How Can I Get The OFAC Alert Off My
Credit Report?
A consumer has the right under the Fair Credit
Reporting Act (FCRA), 15 U.S.C. 1681 et seq., to request the
removal of incorrect information on his/her credit report.
To accomplish this, consumers should contact the credit reporting
agency or bureau that issued the credit report. For more information
on consumers' rights under the FCRA, visit the Federal Trade
Commission's website at http://www.ftc.gov/bcp/conline/edcams/fcra/.
^
TOP
Online Compliance
Can 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 o.k.
because they themselves are not sanctioned parties.
You cannot do something indirectly that you would not be
able to do directly. Therefore, these sites can be used to
facilitate authorized transactions, but you cannot use them
to perform a transaction which would be in violation of U.S.
law. For example, the Cuban Assets Control Regulations authorize
any U.S. person to send $300/quarter to any individual in
Cuba. The U.S. remitter can use a third-country provider to
send these funds to Cuba. If the person attempts to send more
than $300/quarter to any one individual, however, he or she
is in violation of U.S. law and subject to penalties. Another
example is booking tourist travel to Cuba using an internet
travel service provider in a third country. Spending money
on tourism is prohibited by the CACR, regardless of how the
travel is booked or how it is paid for. Ultimately some of
these funds will end up in Cuba in violation of U.S. law.
The fact that the trip was booked through a third-country
company, either in person or over the internet, is irrelevant.
[04-13-04]
My company provides money remittance
and account services via the Internet. Does OFAC have any
compliance guidance for this type of business?
Complying with United States sanctions policy presents unique
challenges to institutions that operate exclusively on the
Internet. The Internet has often been thought of as an “anonymous
venue” in that e-commerce transactions can be conducted
in relative privacy with little or no face-to-face contact
among the parties in a transaction. This anonymity creates
a significant challenge for Internet businesses that wish
to satisfy their due diligence requirements.
In order to be compliant with OFAC-governed sanctions regulations,
US jurisdiction entities must ensure that they are not:
A. Engaging in trade or transaction activities that violate
the regulations behind OFAC’s country-based sanctions
programs, and;
B. Engaging in trade or transaction activities with sanctions
targets named onOFAC's list of Specially
Designated Nationals and Blocked Persons (SDNs).
A number of Internet-based financial service companies already
developed Internet Protocol (IP) address blocking procedures.
These companies use publicly available data to maintain tables
of IP addresses based on geographic region. Users attempting
to initiate an online transaction or access an account from
a sanctioned country are blocked based on their IP address.
While this approach is effective, it does not fully address
an Internet firm’s compliance risks. The fact that international
distribution authorities can reassign IP blocks makes the
geographic location of an IP potentially dynamic.
The anonymous character of Internet-based transactions often
places obstacles in the path of rigorous compliance practices.
Firms that facilitate or engage in e-commerce should do their
best to know their customers directly. In order to minimize
their liabilities, Internet remittance and account service
firms should attempt to gather authentic identification information
on their customers before a new account is opened or new transaction
is initiated. This information will help confirm the customer’s
identity and help the e-commerce firm ensure it is not conducting
business with a sanctions target. Currently many Internet
remittance companies use credit card authentication as the
primary method of confirming a customer’s identity.
While this method is technologically expedient, it does not
meet the standards of due diligence normally found in the
non-Internet-based financial community. A company cannot rely
on another firm’s compliance program in order to mitigate
risk.
It is recommended that e-commerce firms gather and record
“purpose of payment” information on each transaction
they process. In the non-Internet sector, financial institutions
are able to stop in-process transactions and gather more information
on them. Due to the level of automation found within the Internet
financial sector, this type of in-process information gathering
is not always possible. Collecting information on the purpose
of payments upfront will allow Internet firms to better screen
outgoing and incoming transactions for potential violations.
[04-13-04]
Licensing Questions
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 is a provision contained in the regulations
which authorizes a particular type of transaction. A person
does not need to apply for a general license because the regulation
itself authorizes the transaction. A person engaging in a
transaction pursuant to a general license must make sure that
all conditions of the provision are strictly observed. A specific
license is a written document issued by OFAC to a particular
person or entity, authorizing a particular transaction in
response to a written license application. Regulations may
contain statements of OFAC's specific licensing policy with
respect to particular transactions. [09-10-02]
Most license applications do not have to be
submitted on a particular form. However, it is essential to
include in the request all necessary information as required
in the application guidelines or the regulations pertaining
to the particular embargo program. When applying for a license,
provide a detailed description of the proposed transaction,
including the names and addresses of any individuals/companies
involved. The mailing address for license applications is:
Office of Foreign Assets Control
U.S. Department of the Treasury
Treasury Annex
1500 Pennsylvania Avenue, NW
Washington, DC 20220
Attn: Licensing Division
and can be found under the "Contacts"
section of OFAC's website. Depending upon the transaction,
there may be specific guidance available on OFAC's website
under relevant "Guidelines and Information" in "Sanctions
and Country Program Summaries." [09-10-02]
A denial by OFAC of a license application constitutes
final agency action. The regulations do not provide for a
formal process of appeal. However, OFAC will reconsider its
determinations for good cause, for example, where the applicant
can demonstrate changed circumstances or submit additional
relevant information not previously made available to OFAC.
[09-10-02]
OFAC will notify applicants in writing as soon as a determination
has been made on their application. The length of time for
determinations to be reached will vary depending on the complexity
of the transactions under consideration, the scope and detail
of interagency coordination, and the volume of similar applications
awaiting consideration. Applicants are encouraged to wait
at least two weeks before telephonically contacting the Licensing
Division at (202) 622-2480 to inquire about the status of
their application. [09-10-02]
Many of OFAC's licensing determinations are
guided by U.S. foreign policy and national security concerns.
Numerous issues often must be coordinated with the U.S. Department
of State and other government agencies, such as the U.S. Department
of Commerce. [09-10-02]
Technology Questions
Yes. OFAC's SDN list is available in both fixed-field
and delimited formats that can be imported into a variety
of software programs. [09-10-02]
OFAC does not provide SDN data in those specific
file formats. However, the delimited files can be easily imported
into any spreadsheet. Individuals with specific questions
on this operation should call OFAC's Compliance hotline (1-800-540-6322)
to receive help on the importation of SDN data. [09-10-02]
The delimiter is an @ symbol. This symbol was
chosen because it stands out more than a comma delimiter.
[09-10-02]
No. OFAC web site users must search the SDN
list manually. Users can search the PDF version of the SDN
list using the "find" feature of the Adobe Acrobat Reader.
Most word processing programs also have a search function
to scan OFAC's ASCII versions of the SDN list. Individuals
with specific, technical questions about searching should
contact OFAC's Compliance hotline (1-800-540-6322) for assistance.
[09-10-02]
The delimited files are broken up into three
basic file types: sdn.* (the primary SDN names), add.* (the
address information for each primary SDN entry), and alt.*
(the alternate or aka names for each primary SDN entry). The
data contained within these files is linked together using
a unique integer number known as a "primary key." Each record
is assigned a unique number that is never changed. In addition,
when SDN records are deleted their primary key numbers are
never reused. Users can find detailed information about the
structure and layout of the delimited files in the "readme.txt"
file contained in the Windows or DOS delimited package. [09-10-02]
Yes. OFAC maintains many of its critical files
on a File Transfer Protocol (FTP) server run by the Government
Printing Office. This server can be accessed at:
ftp://fedbbs.access.gpo.gov . The server will accept an anonymous
login. OFAC's data is stored in the directories listed below.
gpo_bbs/fac_sdn - SDN data and delimited files
gpo_bbs/fac_bro - country and program brochures
gpo_bbs/fac_misc - miscellaneous OFAC data
The delimited files are stored in archives that
have different names from those on OFAC's web site. DOS delimited
files are stored in sdall.exe, windows delimited files are
stored in sdallw32.exe, and the standard zip archive is called
sdall.zip. The individual components of OFAC's delimited files
are also stored in a GPO directory called "gpo_bbs/fac_dlim".
[09-10-02]
OFAC also maintains its own FTP server.
This server can be accessed at:
ftp://ofacftp.treas.gov. The server will accept an anonymous
login. OFAC's data is stored in the directories listed below.
/fac_sdn - SDN data and delimited files
/fac_bro - country and program brochures
/fac_misc - miscellaneous OFAC data
The delimited files are stored in archives that
have different names from those on OFAC's web site. DOS delimited
files are stored in sdall.exe, windows delimited files are
stored in sdallw32.exe, and the standard zip archive is called
sdall.zip. The individual components of OFAC's delimited files
are also stored in a GPO directory called "/fac_dlim". [02-07-03]
Yes. The standard *.zip archive should work
with most UNIX systems and is available on the Government
Printing Office site. [09-10-02]
Yes. OFAC has two separate subscription services
available. These services can be accessed by clicking on the
links in the bottom, left corner of OFAC's homepage (www.treas.gov/ofac).
[09-10-02]
The FTP site at ofacftp.treas.gov is run by
OFAC. Contact OFAC's Compliance Hotline at 1-800-540-6322
for technical support. [02-07-03]
The FTP site at fedbbs.access.gpo.gov is run
by the Government Printing Office (GPO). OFAC acts as a content
provider to this system and is not responsible for its administration.
Users experiencing problems with the FEDBBS system should
contact GPO's technical support line at (202) 512-1530. [09-10-02]
While OFAC cannot give specific advice on how
to design an automated system for SDN downloads, many institutions
solve this problem by setting up a scheduled download of the
SDN list. These firms conduct their own risk assessments and
decide how often they need to download the list in order to
comply with U.S. law. [09-10-02]
The SDN list is comprehensive. Database administrators
can overwrite any old data in their systems with the latest
versions of the delimited files, thus ensuring that their
database is current. [09-10-02]
No. OFAC's Financial Operations Bulletin is
only available in a free-form, ASCII text file. Database administrators
interested in refreshing their databases with new SDN data
should use the comprehensive delimited files available on
OFAC's web site. [09-10-02]
OFAC's regulations are broader than the specific laws that deal
with the terrorists and persons who support them. All individuals
and entities that fall under U.S. jurisdiction should use
OFAC's comprehensive list of Specially Designated Nationals.
This list includes the designated terrorists and is available
on OFAC's web
site. It is important to note that some OFAC sanctions,
such as those pertaining to Iraq, Libya, Sudan, and Cuba,
apply to persons acting on behalf of those targeted governments
even if those persons do not appear on the SDN list. It is
also important to note that OFAC's Cuba sanctions prohibit
transactions with Cuban nationals, wherever located. U.S.
persons are expected to exercise due diligence in determining
whether any such persons are involved in a proposed transaction.
[09-10-02]
I'm a subscriber
to OFAC’s Recent OFAC Actions and Financial Operations
Bulletin e-mail notification Listservs. For some reason I
have stopped receiving the broadcast messages when OFAC updates
its website. Why is this?
You may have responded to one of these incoming
messages. Responding to a broadcast message removes you from
the subscription list. If you wish to provide feedback to
OFAC without inadvertently removing yourself from the subscription
list, you should write to us at our feedback e-mail address
(ofac_feedback@do.treas.gov). Also note that if you have an
“out of the office” message that replies to all
e-mails in your absence, this, too, will result in your being
deleted from the subscription list. If you'd like to resubscribe,
please do so here [link to: http://www.treas.gov/offices/enforcement/ofac/subscriberecent.html].
[12-22-03]
I recently attempted to subscribe
to one of OFAC’s e-mail list services and I have not
yet received my confirmation e-mail. Why is this?
Failure to receive a confirmation e-mail is
typically (though not always) the result of a configuration
problem on the user’s end. The user should follow these
steps to ensure that he or she is using the system properly.
1. Be patient. For a variety of reasons e-mail sometimes
take a little longer than expected to reach a user. If you
do not receive a confirmation e-mail within a day of subscribing,
proceed to step 2.
2. Confirm that you have entered the correct e-mail address
and address punctuation. A surprising number of errors have
been the result of users accidentally using commas instead
of periods.
3. Check to see if you have a SPAM filter in place. SPAM filters
have a variety of configurations. Some of these filters have
been known to erroneously block e-mails originating from OFAC’s
list servers. OFAC cannot provide technical support for local
configuration issues. If you believe a SPAM filter is preventing
you from receiving OFAC e-mails, please discuss the matter
with your IT department or network administrator and proceed
to step 4. If you can confirm that you do not have a SPAM
filter in place or any other local configuration problem,
please skip step 4 and proceed to step 5.
4. If your network or e-mail client’s configuration
is preventing you from receiving your subscription confirmation
e-mail, it is likely that you will not be able to receive
e-mail from OFAC’s list servers even if OFAC manually
adds you to our listserv. These configuration issues must
be resolved with your IT department or network administrator
before you can proceed.
5. E-mail a request to be manually added to the e-mail list
servers to O_F_A_C@do.treas.gov. Please type “MANUAL
LIST ADD” into the subject field of the e-mail. Please
include the e-mail address you want added in the body of the
e-mail and specify the listserv you wish to become a member
of.
6. If, after you have exhausted all of the above options,
you still fail to receive OFAC’s broadcast notifications,
please call our Compliance Hotline at 1-800-540-6322. [12-22-03]
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