Glossary

Compliance

OFAC

Also known as Office of Foreign Assets Control

OFAC, the Office of Foreign Assets Control, administers and enforces US economic sanctions against targeted countries, entities and individuals. US companies must not transact with sanctioned parties, and violations carry civil and criminal penalties regardless of intent.

In plain terms: The US sanctions authority. Its lists bind your company absolutely.

Why it matters

Directly relevant to founders in or dealing with sanctioned jurisdictions. Payment processors and banks screen against OFAC lists automatically, which is why some nationalities and destinations are declined before a human ever sees the application.

Read the full guideInternational founders

Related terms