---
title: "OFAC: Office of Foreign Assets Control | Model Diplomat"
description: "The Office of Foreign Assets Control (OFAC) enforces U.S. economic sanctions against foreign states and individuals, crucial for national security."
url: "https://modeldiplomat.com/learn/glossary/ofac"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Office of Foreign Assets Control is a unit of the U.
- S.
- What is the SDN List and the 50 Percent Rule?
- How do OFAC secondary sanctions affect non-U.S. countries?
- How do OFAC sanctions differ from UN Security Council sanctions?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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## Positions at a glance

### Supporters

The Office of Foreign Assets Control (OFAC) is an agency within the United States Department of the Treasury, operating under the Office of Terrorism and Financial Intelligence (TFI). It administers and enforces economic and trade sanctions in support of U.S. national security and foreign policy objectives. OFAC traces its institutional lineage to the Office of Foreign Funds Control established in 1940 to block Nazi-era assets, and was formally created in 1950 during the Korean War when President Truman froze Chinese and North Korean assets. Its statutory authorities derive principally from the Trading with the Enemy Act of 1917 (TWEA), the International Emergency Economic Powers Act of 1977 (IEEPA), and the National Emergencies Act of 1976, supplemented by program-specific statutes such as the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 and the Countering America's Adversaries Through Sanctions Act (CAATSA) of 2017.

### Opponents

Named instances illustrate its potency: BNP Paribas paid US$8.9 billion in 2014 for processing transactions tied to Sudan, Iran, and Cuba; OFAC sanctioned the Iranian Revolutionary Guard Corps and reimposed sweeping measures after the 2018 U.S. withdrawal from the JCPOA; and following Russia's 2022 invasion of Ukraine it blocked the Central Bank of the Russian Federation, major Russian banks, and oligarchs, coordinating with the EU and the G7 price-cap mechanism. As of 2026, OFAC continues to administer active programs against Russia, Iran, North Korea, Venezuela, and numerous designated terrorist and cyber actors, with growing attention to cryptocurrency mixers such as the 2022 Tornado Cash designation.

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In 2014, OFAC and U.S. authorities penalized France's BNP Paribas US$8.9 billion for clearing dollar transactions linked to Sudan, Iran, and Cuba in violation of U.S. sanctions programs.

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