Which entity is responsible for enforcing economic and trade sanctions?

The Office of Foreign Assets Control (OFAC) is the entity responsible for enforcing economic and trade sanctions in the United States. Established within the U.S. Department of the Treasury, OFAC administers and enforces a variety of economic and trade sanctions based on US foreign policy and national security goals, which often target countries and regimes, terrorists, international narcotics traffickers, those involved in the proliferation of weapons of mass destruction, and other threats.

The agency issues regulations to restrict or prohibit transactions, and these sanctions can take various forms, including asset freezes and trade embargoes. Financial institutions and companies must comply with OFAC regulations to avoid penalties, and they often implement compliance programs to ensure they do not inadvertently engage in prohibited transactions.

This role is distinct from that of the other entities mentioned. The Federal Deposit Insurance Corporation (FDIC) primarily focuses on insuring deposits at banks and preserving public confidence in the U.S. financial system. The Securities and Exchange Commission (SEC) oversees securities markets and protects investors by enforcing securities laws. The Commodity Futures Trading Commission (CFTC) regulates the U.S. derivatives markets, including futures, swaps, and certain kinds of options. Each of these agencies has specific mandates that do not include the enforcement of economic