What should be done with funds transferred from a country that has sanctions against it?

When funds are transferred from a country that has sanctions imposed against it, the correct action is to block and report those funds to the Office of Foreign Assets Control (OFAC). This requirement comes from the need to comply with U.S. laws and regulations regarding economic and trade sanctions. OFAC administers and enforces economic and trade sanctions against targeted foreign countries and regimes, individuals, terrorists, international narcotics traffickers, and other threats to U.S. national security, foreign policy, or economy.

Blocking the funds means that they cannot be used or disbursed until appropriate action is taken regarding their compliance with U.S. law. Reporting these transactions to OFAC is critical as it allows for necessary oversight and potential legal actions to be initiated if the funds are found to violate sanctions.

In contrast, other actions such as using the funds freely, returning them to the sender, or investing them in U.S. securities would not comply with regulatory standards governing sanctioned countries. These actions could lead to significant legal consequences as they would disregard established sanctions protocols designed to protect national security and maintain international order.