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Crypto Terms:  Letter U
Jun 19, 2023 |
updated Apr 02, 2024

What is US Office of Foreign Assets Control (OFAC)?

US Office of Foreign Assets Control (OFAC) Meaning:
US Office of Foreign Assets Control (OFAC) - financial intelligence and enforcement agency.
2 minutes

Let's find out US Office of Foreign Assets Control (OFAC) meaning, definition in crypto, what is US Office of Foreign Assets Control (OFAC), and all other detailed facts.

The US Office of Foreign Assets Control (OFAC) is a financial intelligence and enforcement agency under the supervision of the US Treasury Department. It was founded in 1950 during the Korean war. As China entered the war, US president Harry Truman called for a national emergency and froze the Chinese and Korean assets within the US jurisdiction.

The OFAC is responsible for publishing the Specially Designated Nationals and Blocked Persons List (SDN). It’s a list of individuals and organizations that are owned by or act on behalf of targeted countries.

The listed parties can be terrorists, affiliates of foreign aggressors, and those otherwise acting against the interests of the US government. The OFAC imposes sanctions on the entities listed on the SDN.

If an entity is sanctioned, their assets are considered blocked. US citizens are banned from having any financial dealings with the parties listed on the SDN. Congress approves the appropriate sanctions. The president also has the power of approval if a state of emergency is declared.

The OFAC can follow the UN mandates to impose sanctions on entities and nations. Russia was initially sanctioned in 2014, following the occupation of Crimea, with further sanctions being imposed in 2022, during the invasion of Ukraine. Other countries and regions sanctioned by the OFAC are Zimbabwe and the Balkan states.

Since 2020, the OFAC has also been investigating cryptocurrencies. The agency has imposed fines and warnings on companies like Coinbase and BitPay due to cases of ransomware and other malicious attacks on victims possessing cryptocurrencies.