Which description best characterizes OFAC's function?

• A. A private company that audits sanctions
• B. The U.N. sanctions body
• C. The U.S. Commerce Department
• D. The U.S. Treasury enforcement body overseeing economic and trade sanctions

Answer: (D)

OFAC is the U.S. Treasury office responsible for administering and enforcing economic and trade sanctions to support U.S. foreign policy and national security goals. This means it designates sanctioned individuals and entities, blocks their assets, and issues licenses for transactions that are allowed under the sanctions. It also enforces penalties for violations and monitors compliance. It’s not a private auditing company, not the United Nations sanctions body, and not the Commerce Department. The UN sets international sanctions, while OFAC implements U.S. sanctions domestically under applicable laws and executive orders, coordinating with other agencies as needed.