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. Blue Chip Swap

    When a domestic investor purchases a foreign asset and then transfers ...
  4. Trade

    A basic economic concept that involves multiple parties participating ...
  5. Organization for Economic Cooperation ...

    A group of 30 member countries that discuss and develop economic ...
  6. Globalization

    The tendency of investment funds and businesses to move beyond ...
RELATED FAQS
  1. What financial regulation exist to control the secondary market?

    The secondary market, most commonly referred to as the stock market, is largely built on self-regulating exchanges that also ... Read Full Answer >>
  2. How do commercial banks us the 'money multiplier' to create money?

    In a fractional reserve banking system, commercial banks are permitted to create money by allowing multiple claims to assets ... Read Full Answer >>
  3. Are there any exceptions to the law of demand?

    The law of demand applies in market economies and may operate differently for different products, markets and industries. ... Read Full Answer >>
  4. Besides Porter's 5 forces, what other forces shape industry in the 21st century?

    Competition, potential new competition, supplier power, buyer power and the threat of new substitute products, also known ... Read Full Answer >>
  5. How does a government raise the economy's money supply?

    The government can raises the money supply by loosening money or the reserve requirement for banks. Both actions work to ... Read Full Answer >>
  6. How does contractionary fiscal policy lead to the opposite of the crowding out effect?

    According to general equilibrium models in contemporary macroeconomics, expansionary fiscal policy could cause crowding out ... Read Full Answer >>
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. Economics

    The 3 Most Dangerous Terrorist Organizations

    A brief look at the Islamic State, Al Qaeda and Boko Haram. What are they? What do they want? Where did they come from?
  3. Economics

    How Terrorism Affects Markets and the Economy

    Terrorism causes quantifiable short-term and long-term costs. After major terror attacks, markets tend to drop quickly but recover within a year.
  4. Options & Futures

    Get To Know These Crucial US Options Market Regulations

    How are options regulated in the U.S and which organizations are involved in options market regulations?
  5. Economics

    What's Expansionary Policy?

    Expansionary policy is a macroeconomics concept that focuses on expanding the economy to counteract cyclical downturns. Expansionary policy can be implemented in one of two ways, or a combination ...
  6. Economics

    The Impact Of Ending The US Embargo On Cuba

    Many argue that ending the US embargo on Cuba will not only make US consumers happy, but also help the US economy and bring more freedoms to Cuba.
  7. Economics

    What's a Subsidy?

    A subsidy is a benefit given to an individual, business or institution, typically by the government. Subsidies are given to promote a social good or an economic policy. The government usually ...
  8. Economics

    What does Current Account mean?

    The current account reflects the difference between a country’s savings and investments.
  9. Economics

    Will Alex Tsipras Change The European Economy?

    A debt default and a Euro exit by Greece's leaders would likely cause more harm to Greece's economy than to the EU, of which Greece is just a small part.
  10. Economics

    Market Economy

    In a market economy, economic decisions and prices are determined by market forces rather than by central planning.

You May Also Like

Hot Definitions
  1. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
  2. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
  3. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  4. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  5. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  6. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
Trading Center