GlossaryEN1 min readUpdated: Jun 26, 2026
OFAC (Office of Foreign Assets Control)
OFAC – the Office of Foreign Assets Control – is the U.S.
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Source: https://ofac.treasury.gov
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Logistics Concept
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Definition & Explanation
OFAC – the Office of Foreign Assets Control – is the U.S. Treasury bureau responsible for administering and enforcing American economic and trade sanctions against designated countries, individuals, and entities. Its primary screening tool is the SDN List (Specially Designated Nationals and Blocked Persons), which must be checked against all parties to a transaction. The defining characteristic for global logistics is OFAC's extraterritorial reach: any transaction involving U.S. dollars, U.S. persons, or U.S.-based infrastructure falls under OFAC jurisdiction, regardless of where the companies involved are headquartered. Penalties for violations run into the millions of dollars and can include loss of access to the U.S. financial system. Among all major sanctions authorities, OFAC carries the broadest extraterritorial scope and is widely regarded as the single most consequential compliance obligation for international freight operations.
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