When should an individual report to OFAC?

An individual should report to the Office of Foreign Assets Control (OFAC) after any transaction with a country on OFAC's Specially Designated Nationals (SDN) list because these countries and entities are subject to U.S. sanctions for reasons such as national security and foreign policy interests. Engaging in transactions with individuals or organizations on the SDN list can implicate legal and regulatory violations, thus requiring reporting to OFAC to ensure compliance with U.S. laws. This obligation helps the government monitor and control activities that might threaten national security or violate economic sanctions policies.

Reports made to OFAC allow the agency to assess risks and enforce the sanctions effectively, ensuring that U.S. individuals and businesses do not inadvertently engage in unlawful transactions with sanctioned entities. This practice is crucial in maintaining international compliance and upholding the integrity of U.S. financial systems.