Office Of Foreign Asset Control - OFAC


DEFINITION of 'Office Of Foreign Asset Control - OFAC'

A department of the U.S. Treasury that enforces economic and trade sanctions against countries and groups of individuals involved in terrorism, narcotics and other disreputable activities.

BREAKING DOWN 'Office Of Foreign Asset Control - OFAC'

The OFAC was officially created in 1950, when China entered the Korean War. President Truman declared the event a national emergency, and froze all Chinese and Korean assets subject to U.S. jurisdiction. The OFAC's predecessor was the Office of Foreign Funds Control (OFFC), which was established in response to the Nazi invasion of Norway in 1940.

The OFAC program runs many sanctions based on United Nations mandates. Basically, through these sanctions and trade policies, the OFAC tries to make the economic lives of these countries or groups of individuals very difficult. This is done as a way to pressure a country to conform to certain laws or regulations, or to discontinue disreptuble activity.

  1. Balance Of Trade - BOT

    The difference between a country's imports and its exports. Balance ...
  2. General Agreement On Tariffs And ...

    A treaty created following the conclusion of World War II. The ...
  3. World Trade Organization - WTO

    An international organization dealing with the global rules of ...
  4. Trade

    A basic economic concept that involves multiple parties participating ...
  5. Globalization

    The tendency of investment funds and businesses to move beyond ...
  6. Organization for Economic Cooperation ...

    A group of 30 member countries that discuss and develop economic ...
Related Articles
  1. Economics

    What Is The World Trade Organization?

    The WTO sets the global rules of trade. But what exactly does it do and why do so many oppose it?
  2. Entrepreneurship

    START-UP NY: How a Tax-Free Zone Would Work

    START-UP NY is an initiative designed to attract companies to New York State by giving them 10 years of tax breaks. Sounds good, but is it a success?
  3. Investing News

    Investing in the Future: 17 Goals

    On September 25th 2015, 193 world leaders committed to 17 Global Goals to achieve 3 extraordinary things in the next 15 years. End extreme poverty. Fight inequality & injustice. Fix climate change.
  4. Economics

    Understanding the Bretton Woods Agreement

    The Bretton Woods Agreement is a famous international monetary agreement that came out of a meeting of the UN Monetary and Financial Conference.
  5. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  6. Markets

    Fat Tail Risk Makes Global Warming Scarier

    The cost of global warming does not take into account climate change-related catastrophes. Here's where fat-tail distributions come in.
  7. Economics

    Is The EU Holding Germany Back?

    As Germany agrees to initiate bailout talks with Greece once again, could all of the EU's economic turmoil result in Germany being better off alone?
  8. Economics

    What Happens in Deregulation?

    Deregulation is the removal of government oversight in a particular industry, market or economy.
  9. Credit & Loans

    Why Cash Will Never Be Obsolete

    As long as the banking system remains strong and so many Americans remain unbanked, the United States will not have a cashless society.
  10. Economics

    Whole Foods, Price Gouging And Sky-High Margins

    Over the years Whole Foods Market has grown to have more than 360 stores in the US and abroad. However, this company is not without its critics.
  1. What are the disclosure requirements for a private placement?

    The U.S. Securities and Exchange Commission (SEC) has set forth disclosure requirements for private placements, including ... Read Full Answer >>
  2. How is trading volume regulated by the Securities and Exchange Commission (SEC)?

    The U.S. Securities and Exchange Commission (SEC) has trading volume as a requirement for selling securities that are otherwise ... Read Full Answer >>
  3. Has deregulation helped or hurt the profitability of companies in the telecommunications ...

    Deregulation is almost always a double-edged sword in terms of business profitability. The profits of legally protected monopolies ... Read Full Answer >>
  4. What level of reserve ratios is typical for an insurance company to protect against ...

    In the United States, and most developed nations, regulators impose required statutory capital reserve ratios on insurance ... Read Full Answer >>
  5. How does government regulation impact the retail sector?

    Many different subsectors are in the retail industry, ranging from retail food to clothing to furniture and beyond. Each ... Read Full Answer >>
  6. What are the Federal Reserve's guidelines on demand deposit accounts?

    Section 19 of the Federal Reserve Act of 1913 authorizes the Federal Reserve Board to impose reserve requirements on the ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  2. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  3. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  4. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  5. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
  6. Operating Cost

    Expenses associated with the maintenance and administration of a business on a day-to-day basis.
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!