Which organization enforces U.S. economic sanctions?

Study for the Certified Bank Secrecy Act Professional Test. Use flashcards and multiple-choice questions with hints and explanations. Get exam ready!

OFAC, or the Office of Foreign Assets Control, is the agency that administers and enforces U.S. economic sanctions. It sits within the U.S. Treasury and is responsible for implementing sanctions programs, designating prohibited individuals and entities, maintaining lists of blocked parties, and issuing licenses for transactions that might be allowed under specific authorizations. OFAC also enforces compliance by U.S. persons and financial institutions and can impose civil or criminal penalties for violations. That role as the enforcement authority for sanctions is why this is the best answer.

Sanctions Programs describe the sets of rules and lists OFAC administers, not the enforcing body. CIP, the Customer Identification Program, is part of the Bank Secrecy Act requirements for verifying customers, not sanctions enforcement. High-Risk Areas are categories used in risk assessments and due diligence, not responsible for enforcing sanctions.