Office of Foreign Assets Control (OFAC): Video Tutorial on Blocked Funds

Introduction

The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury is responsible for administering and enforcing economic and trade sanctions against countries, entities, and individuals designated as posing a threat to U.S. national security, foreign policy, or economic interests. One of the consequences of being designated by OFAC is the potential blocking of assets under U.S. jurisdiction.

What are Blocked Funds?

Blocked funds are financial or economic resources owned or controlled by a sanctioned individual or entity that are subject to OFAC's control and cannot be transferred, withdrawn, or otherwise dealt with without OFAC's authorization. The funds may be held in a variety of forms, including bank accounts, investment accounts, securities, and real estate.

OFAC's Video Tutorial on Blocked Funds

OFAC has released a comprehensive video tutorial that provides an overview of the regulations and procedures governing blocked funds. The tutorial is divided into ten modules, each covering a specific aspect of the blocking process:

Module 1: Introduction to Blocked Funds

Provides an overview of the concept of blocked funds and explains how they are designated.
Discusses the legal basis for blocking funds and the consequences of violating the regulations.

Module 2: Identifying Blocked Persons

Explains how to identify individuals and entities that have been designated by OFAC.
Provides resources and tools for searching the Specially Designated Nationals and Blocked Persons List (SDN List).

Module 3: Blocking Obligations

Outlines the obligations of U.S. persons to block funds of designated persons.
Explains the specific actions that must be taken to block funds and the penalties for non-compliance.

Module 4: Unblocking Funds

Describes the process for requesting the unblocking of funds that are believed to be erroneously blocked.
Provides instructions on how to submit a request and the documentation required.

Module 5: Licenses and Authorizations

Discusses the circumstances under which OFAC may issue specific licenses or authorizations to deal with blocked funds.
Explains the application process and the conditions that must be met to obtain a license.

Module 6: Enforcement of Blocked Funds Regulations

Summarizes the potential consequences for violating OFAC's blocked funds regulations.
Outlines the enforcement powers of OFAC and other U.S. agencies.

Module 7: Best Practices for Handling Blocked Funds

Provides guidance on best practices for managing and protecting blocked funds.
Recommends internal policies and procedures to ensure compliance with OFAC regulations.

Module 8: Frequently Asked Questions

Addresses common questions and concerns related to blocked funds.
Provides clarification on specific topics and scenarios.

Module 9: Resources for Compliance

Offers a list of resources and contact information for obtaining further assistance from OFAC.
Includes links to the OFAC website, compliance manuals, and training materials.

Module 10: Conclusion

Summarizes the key points covered in the tutorial and emphasizes the importance of compliance.
Encourages U.S. persons to consult with OFAC for guidance on specific situations.

Conclusion

OFAC's video tutorial on blocked funds is an invaluable resource for understanding the regulations and procedures governing blocked funds. By following the guidelines and best practices outlined in the tutorial, U.S. persons can avoid potential violations and ensure compliance with OFAC's sanctions.