An OFAC (Office of Foreign Assets Control) license is required for individuals or entities planning to engage in transactions with individuals or entities subject to U.S. sanctions. This applies to both U.S. and foreign companies and persons, as long as their activities fall under U.S. jurisdiction.
It’s required when:
If you plan to do business or engage in transactions with companies or individuals from sanctioned countries (e.g., Iran, North Korea, Syria), an OFAC license is required.
Banks and financial institutions must obtain an OFAC license if they want to conduct financial transactions involving sanctioned persons or entities.
Companies involved in exporting or importing sanctioned goods and services must have an OFAC license.
Investors planning to invest in sanctioned businesses or projects also need to obtain an OFAC license.
Providers of services such as legal, consulting, or other professional services require a license if their activities involve sanctioned persons or entities.
Types of Licenses
OFAC grants two types of licenses:
– General Licenses – Applicable to certain broad activities.
– Individual Licenses – Tailored to specific transactions or activities.
License applications are submitted through the OFAC Licensing Portal. The application process follows these steps:
1. Submission of the application
2. Management review
3. Interagency review
4. Approval by the U.S. Department of the Treasury
5. Final approval by the applicant
6. Issuance of the license
Applicants can check the status of their submission through the portal. For additional support, a callback from OFAC is also available for license applications. You can learn more at their recent actions page.
If you’re unsure whether you need an OFAC license, consult a specialists at [email protected]
Additional Reading
For more insights on U.S. export controls, read this article.
aml.plus team