Export Controls & Sanctions
Economic Sanctions
Also known as: Sanctions, OFAC Sanctions
Economic sanctions are restrictions imposed by governments or international bodies on dealings with targeted countries, entities, or individuals to advance foreign-policy and security objectives, enforced in the United States chiefly by the Treasury's sanctions office. Sanctions may freeze assets, block transactions, or prohibit trade with listed parties, and they often reach any dealing that touches the sanctioning country's financial system or persons. Because liability can attach regardless of intent and can extend to a company's foreign affiliates, robust screening of counterparties and constant list monitoring are essential to avoid severe civil and criminal penalties.
Narrower than an embargo and harder to track, because they target named parties and sectors and change constantly. The list you screened against last month is not the list today, and ownership rules mean an unlisted company can be blocked by who owns it.
Where it matters for compliance
- Blocking flows through ownership, so an entity absent from the list can still be blocked by who owns it.
- Re-screen before each transaction, not only at onboarding, and keep the dated result.
Related terms
Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.