Office Of Foreign Asset Control - OFAC

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. World Trade Organization - WTO

    An international organization dealing with the global rules of ...
  2. General Agreement On Tariffs And ...

    A treaty created following the conclusion of World War II. The ...
  3. Globalization

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

    A group of 30 member countries that discuss and develop economic ...
  5. Trade

    A basic economic concept that involves multiple parties participating ...
  6. Balance Of Trade - BOT

    The difference between a country's imports and its exports. Balance ...
Related Articles
  1. What Is The World Trade Organization?
    Economics

    What Is The World Trade Organization?

  2. America's Compensation Gap Shows No ...
    Personal Finance

    America's Compensation Gap Shows No ...

  3. How Globalization Affects Developed ...
    Fundamental Analysis

    How Globalization Affects Developed ...

  4. How Effective Is The Chinese Wall?
    Investing Basics

    How Effective Is The Chinese Wall?

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center