An agency within the US Department of the Treasury that administers and enforces US economic and trade sanctions based on US foreign policy and national security goals. OFAC sanctions apply to targeted foreign countries and regimes, terrorists, international narcotics traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy, or economy of the US. OFAC acts under US presidential national emergency powers as well as authority granted by specific legislation to impose controls on transactions and freeze assets under US jurisdiction. OFAC violations can result in civil and criminal penalties, including imprisonment.

For more information about OFAC, see Practice Note, OFAC Due Diligence in Securities Offerings. For examples of OFAC representations in underwriting agreements for recent SEC-registered offerings, visit the What's Market Underwriting Agreements database.

For a discussion of OFAC considerations for lenders, see Practice Note, OFAC, USA PATRIOT Act, and other Anti-Terrorism Regulations Relevant for Lenders.