OFAC Sanctions: What UK Firms Should Know
In brief: OFAC sanctions are US sanctions, but they may matter to UK firms where there is a US nexus, international client exposure, or group screening policy.
Key points
- OFAC is not the same as OFSI, but both can appear in screening workflows.
- Check UK obligations first, then consider US nexus and client context.
- Document why OFAC exposure was reviewed and what decision was made.
What are OFAC sanctions?
OFAC is the US Office of Foreign Assets Control. It administers US sanctions, including the SDN list. UK firms should not confuse OFAC with OFSI, but OFAC data may matter where a client, payment, counterparty, ownership chain, or group policy has a US connection.
When UK firms may care
- US clients, owners, or counterparties.
- US-dollar payments or US financial institutions.
- Group policies requiring OFAC checks.
- International clients with multi-jurisdiction exposure.
- Screening tools that return OFAC hits.
What to do with an OFAC hit
Review identifiers, confirm whether there is a true match, check whether UK restrictions also apply, and get specialist advice where needed.
Recordkeeping
Keep the search source, date, match details, US nexus analysis, UK sanctions checks, and escalation decision.
This guide is general information for UK regulated firms. Sanctions change quickly, so always check the relevant official list or get specialist advice before making a client decision.