FOREIGN ASSETS CONTROL: Actions Have Been Taken to Better Ensure Financial Institution Complicance With OFAC Saction Programs, But Their Effectiveness Cannot Yet Be Determined. Audit Report

摘要

The mission of OFAC, an office within the Department of the Treasurys Office of Terrorism and Financial Intelligence, is to administer and enforce economic and trade sanctions, based on U.S. foreign policy and national security goals, against targeted foreign countries, regimes, terrorists, international narcotics traffickers, and those engaged in activities related to the proliferation of weapons of mass destruction. OFAC acts under presidential wartime and national emergency powers, as well as authority granted by specific legislation, to impose controls on transactions and freeze foreign assets under U.S. jurisdiction. Economic sanctions are intended to deprive the target of the use of its assets and deny the target access to the U.S. financial system and the benefits of trade, transactions, and services involving U.S. markets. To prohibit commercial or financial transactions involving sanctioned countries, entities, or individuals, OFAC primarily relies on delegations of authority made pursuant to the Presidents broad powers under the Trading With the Enemy Act and the International Emergency Economic Powers Act. OFAC currently administers 30 economic sanctions programs pursuant to presidential and congressional mandates. Though 8 of these 30 programs have been terminated, they still require residual administrative and enforcement activities. As part of its enforcement efforts, OFAC publishes on its web site a list of individuals and companies controlled by, or acting on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific. Collectively, such individuals and companies are called Specially Designated Nationals and Blocked Persons (SDNs).