Office of Foreign Assets Control: Difference between revisions

The '''Office of Foreign Assets Control''' ('''OFAC''') is a [[financial intelligence]] and enforcement agency of the [[United States Department of the Treasury|United States Treasury Department]]. It administers and enforces economic and trade [[economic sanctions|sanctions]] in support of U.S. [[National Security of the United States|national security]] and [[Foreign policy of the United States|foreign policy]] objectives.<ref name="min">{{cite journal|author1=Tom C.W. Lin|title=Financial Weapons of War |journal=[[Minnesota Law Review]] |date=April 2016|volume=100|issue=4| pages=1377–1440| url= http://www.minnesotalawreview.org/wp-content/uploads/2016/04/Lin_ONLINEPDF.pdf }}</ref> Under [[Executive order|presidential national emergency powers]], OFAC carries out its activities against foreign governments, organizations (including terrorist groups and drug cartels), and individuals deemed a threat to U.S. national security.<ref name="Treasury's War book">{{cite book | title=Treasury's War | publisher=PublicAffairs | author=Zarate, Juan C. | year=2013 | location=New York | isbn=9781610391153}}</ref>

Sometimes described as one of the "most powerful yet unknown" government agencies,<ref name="reuters.com"/><ref>Rubenfeld, Samuel. [https://blogs.wsj.com/riskandcompliance/2014/02/05/ofac-rises-as-sanctions-become-a-major-policy-tool "OFAC Rises as Sanctions Become A Major Policy Tool"], ''[[Wall Street Journal]]'', February 5, 2014</ref> OFAC has the power to levy significant penalties against entities that defy its directives, including imposing fines, freezing assets, and barring parties from operating in the U.S.

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Predecessor agencies of the Division of Foreign Assets Control include Foreign Funds Control (FFC), which existed from 1940 to 1947, and the Office of International Finance (1947 to 1950).<ref>{{Cite web |title=Records of the office of Foreign Assets Control |url=https://www.archives.gov/research/guide-fed-records/groups/265.html |access-date=2024-11-10 |website=www.archives.gov}}</ref><ref name=":0">{{Cite web |title=About OFAC {{!}} Office of Foreign Assets Control |url=https://ofac.treasury.gov/about-ofac |access-date=2024-11-10 |website=ofac.treasury.gov |language=en}}</ref> FFC was established by [[Executive Order 8389]] as a unit of the Office of the Secretary of the Treasury on April 10, 1940. The authority to establish FFC was derived from the [[Trading with the Enemy Act 1917]]. Among other operations, FFC administered wartime import controls over enemy assets and restrictions on trade with enemy states. It also participated in administering the [[Proclaimed List of Certain Blocked Nationals]], or the "Black List", and took [[censuses]] of foreign-owned assets in the US and American-owned assets abroad. FFC was abolished in 1947, with its functions transferred to the newly established [[Office of International Finance]] (OIF). In 1948, OIF activities relating to blocked foreign funds were transferred to the Office of Alien Property, an agency within the [[United States Department of Justice|Department of Justice]].<ref name="Records">{{cite web | title=Records of the Office of Foreign Assets Control | publisher=The National Archives | access-date = 2007-09-17| url=https://www.archives.gov/research/guide-fed-records/groups/265.html#265.1}}</ref>

==Authority and activities==

As part of its efforts to support the [[Iraq sanctions]], in 2005, OFAC fined [[Voices in the Wilderness (organization)|Voices in the Wilderness]] $20,000 for gifting medicine and other humanitarian supplies to Iraqis.<ref>{{cite web|url= http://www.democracynow.org/2005/8/16/voices_in_the_wilderness_ordered_to|title=Voices in the Wilderness Ordered to Pay $20K for Bringing Aid to Iraq |work= Democracy Now! |date= 2005-08-16|access-date=2011-06-08 }}</ref> In a similar case, OFAC imposed and attempted to collect a $10,000 fine, plus interest, against peace activist Bert Sacks for taking medicine to residents of [[Basra]];<ref>{{cite web|url=http://www.iraqikids.org/berts-case/timeline|title=Timeline |publisher=Fined For Helping Iraqi Kids |access-date=2011-06-08 }}</ref> charges against Sacks were dismissed by the court in December 2012.<ref>[http://old.seattletimes.com/html/edcetera/2017151910_bert_sacks_no_fine_and_no_cour.html Ramsey, Bruce] {{Webarchive|url=https://web.archive.org/web/20181114010914/http://old.seattletimes.com/html/edcetera/2017151910_bert_sacks_no_fine_and_no_cour.html |date=2018-11-14 }} "Bert Sacks: No fine and no court time for Iraqi sanctions"; ''The Seattle Times''; 3 Jan 2012.</ref>

In the case of ''[[United States v. Banki]]'', on June 5, 2010, a U.S. citizen was convicted of violating the [[United States sanctions against Iran|Iran Trade Embargo]] for failing to request Iranian currency transfer licenses in advance from OFAC. On August 25, 2010, the Iranian American Bar Association announced that it would file an [[amicus curiae]] brief with the [[United States Court of Appeals for the Second Circuit|Court of Appeals for the Second Circuit]] on ''United States v. Banki''.<ref>[http://www.iaba.us/NewsDetails.aspx?id=117 "IABA to File Amicus Brief in Appeal Before Second Circuit"] {{webarchive|url=https://web.archive.org/web/20101027081749/http://www.iaba.us/NewsDetails.aspx?id=117 |date=2010-10-27 }}</ref>  It has also hired lawyers to request further guidance from OFAC on import of goods from Iran.<ref>[http://www.iaba.us/NewsDetails.aspx?id=117 IABA Hires Lawyers to Request Further Guidance from OFAC] {{webarchive|url=https://web.archive.org/web/20101027081749/http://www.iaba.us/NewsDetails.aspx?id=117 |date=2010-10-27 }}</ref>