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. The Nordic Model: Pros and Cons
    Economics

    The Nordic Model: Pros and Cons

  3. Changes In Tax Legislation And Regulation
    Taxes

    Changes In Tax Legislation And Regulation

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

    America's Compensation Gap Shows No ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center