Money & Finance › Government agencies & regulation › US Department of the Treasury
OFAC: Office of Foreign Assets Control
Since 1950· Institution or agency
Fact, law or dataA rule, statute, definition or measured number.
The Treasury office that runs US economic sanctions, freezing targets' assets and barring Americans from dealing with them.
See it on the Money & Finance map →How it works
Its roots are World War II asset freezes. In December 1950, after China entered the Korean War, Truman blocked Chinese and North Korean assets, the start of the modern office. OFAC keeps the Specially Designated Nationals (SDN) list of thousands of people, companies and ships, and runs dozens of programs, from Iran, North Korea and Russia to drug cartels and cybercriminals. Banks, title companies and brokers screen customers against the list. Violations carry civil penalties even when unintended.
Why it matters
Because most dollar payments pass through US banks, OFAC's list reaches worldwide, making it Washington's main tool for economic pressure short of force.
Facts, rules and data
OFAC's public SDN list and enforcement actions; the 1917 Trading with the Enemy Act and the 1977 International Emergency Economic Powers Act; the presidential executive orders that create each program.
Debates and risks
How well sanctions change behavior is contested, as is whether heavy use pushes countries toward non-dollar payment systems such as China's CIPS.
Connections (2)
▸Financial sanctions and 'weaponizing' the dollar are enforced by OFAC: Office of Foreign Assets ControlFact, law or data
The connection
The President declares a national emergency under the 1977 IEEPA law and issues an executive order; OFAC then names targets, publishes rules and licenses exceptions. US banks must freeze targets' assets and block their payments. Foreign banks usually comply too, because losing access to US dollar accounts would cripple them.
When and why
Since the Korean War freeze of December 1950; recent waves targeted Iran, North Korea and, after February 2022, Russia, with thousands of new designations.
How we know
OFAC's published SDN list and penalty notices; BNP Paribas's $8.9 billion settlement with US authorities in 2014; Binance's 2023 settlement, which included OFAC violations.
Debates and risks
Whether 'secondary sanctions' on foreign firms are legitimate under international law is disputed, and evasion through shadow oil tankers and front companies is widespread.
▸US Department of the Treasury houses OFAC: Office of Foreign Assets ControlFact, law or data
The connection
OFAC is a Treasury office that turns presidential sanctions orders into lists, rules and licenses. The Treasury Secretary holds the delegated power to designate targets, usually in consultation with the State Department, and OFAC investigates and fines violators. Treasury's role at the center of the dollar system is what makes the sanctions bite.
When and why
Washington; its predecessor, the Office of Foreign Funds Control, dates to 1940, and the modern office to December 1950.
How we know
Executive orders delegating IEEPA powers to the Treasury Secretary; OFAC's regulations (31 CFR chapter V) and published enforcement actions.
Debates and risks
How far presidents can stretch emergency economic powers is still being tested; in 2026 the Supreme Court ruled IEEPA, the main sanctions law, does not authorize tariffs.