Which of the following enforces trade sanctions and embargoes and prohibits trade with certain people in other countries?
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The Treasury Department's Office of Foreign Assets Control (OFAC) administers and enforces economic sanctions imposed by the United States against foreign countries. Depending on the country, OFAC programs may freeze assets of embargoed countries, prohibit payment of funds to individuals and countries on the embargo list, or prohibit provision of services to countries subject to US sanctions. These sanctions may require obtaining OFAC approval before conducting research or other activities in or involving the sanctioned country. Some sanctions are more restrictive than others, and apply to the whole country, while others are specifically target certain individuals or entities within a country. Currently, sanctioned countries include the Balkans, Belarus, Burma, Cote D'Ivoire (Ivory Coast), Cuba, Democratic Republic of Congo, Iran, Iraq, Liberia, North Korea, Sudan, Syria, and Zimbabwe. The list of sanctioned countries is updated periodically and is available here. Show OFAC can also designate persons and entities (including persons and entities in the United States) as Specially Designated Nationals ("SDN list"). OFAC designates persons and entities as SDNs for narcotics trafficking, weapons proliferation and other reasons. When entering into discussions with a proposed collaborator, it is critical to check the SDN list for the name of the person or entity with which you are dealing. Business, trade, and other financial and economic dealings with certain countries, entities, and individuals are considered a threat to the foreign policy, economic stability, and national security of the United States. Through Acts of Congress, Presidential national emergency powers, and international agreements, sanctions are imposed against targeted foreign nations and Specially Designated Nationals (SDNs). The Office of Foreign Assets Control (OFAC), a component of the U.S. Department of the Treasury, is the agency responsible for implementing, administering, and enforcing trade embargoes and economic sanctions. The United States Treasury Department defines “prohibited transactions” as “trade or financial transactions and other dealings in which U.S. persons may not engage unless authorized by OFAC or expressly exempted by statute.” The Department further states, “Because each program is based on different foreign policy and national security goals, prohibitions may vary between programs.” While the nature of each sanction is specified in the law or laws pertaining to particular sanctions programs, there are certain prohibited transactions that are commonly involved in many OFAC sanctions programs. Prohibited transactions with blocked nations, entities, or individuals may include the following:
In some circumstances, an exception may be granted to the prohibited transactions. An applicant may apply for a specific license from OFAC or utilize an already published general license that allows him or her to conduct business or engage in transactions that would otherwise be prohibited. Currently, there are OFAC sanctions against a number of countries, organizations, and entities involved with terrorism, diamond trading, international drug trafficking, and the proliferation of weapons of mass destruction. In addition to prohibiting transactions with people and entities on the SDN list, OFAC oversees the following economic sanctions programs:
Learn more about prohibited transactions and the specific sanctions programs here. Due DiligenceThose engaged in international business , trade, or financial transactions are expected to exercise due diligence in ensuring that the person or entity with whom they are conducting business is not on the SDN list or is not a nation subject to U.S. economic sanctions. Compliance with OFAC regulations is strict liability, meaning that ignorance of the law or facts does not excuse non-compliance. Searching the SDN list, investigating possible hits, securing appropriate OFAC licenses, maintaining transparency in transactions and dealings with foreign nationals, and self-reporting of potential violations can all be examples of the due diligence required or encouraged of businesses, individuals, and non-profit organizations. Sanctions regulations often change as individuals and entities are continually added to and removed from the SDN list. Emerging threats and international crises can quickly lead to the imposition of new sanctions against previously untargeted persons, governments, or countries. Sanctions may also be intensified or amended at any time by Executive Order issued by the President or by directives issued by the Treasury Department. Staying abreast of sanctions, compliance requirements, and prohibited transactions can be challenging. An experienced OFAC sanctions lawyer can help individuals and companies maintain compliance while engaging in international transactions. Client ReviewsBy: Sophia Title: Clear and Attentive The Firm is by far the best to work with. They are clear, attentive, and will do anything to help their clients. Rating: ★★★★★5 / 5 stars Who regulates sanctions and embargoes?What are Embargo and Sanctions Programs? The Department of Treasury, Office of Foreign Assets (OFAC) administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals.
What are sanctions and embargoes?Sanctions and embargoes are political trade restrictions put in place against target countries with the aim of maintaining or restoring international peace and security.
Which countries have trade embargoes?Countries. What are sanctions in international trade?International sanctions are political and economic decisions that are part of diplomatic efforts by countries, multilateral or regional organizations against states or organizations either to protect national security interests, or to protect international law, and defend against threats to international peace and ...
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