When can a license authorize a transaction?
For remittances, aid and contracts, read the conditions carefully.
Some otherwise prohibited activities are authorized when license conditions are met. An authorization has a defined scope: who may act, what they may do, when they may do it, and under what conditions.[17]
How do general and specific licenses differ?
General license
A public authorization for a category of activity. A person meeting all its terms generally needs no separate authorization from OFAC, but must comply with the conditions.
Specific license
A document issued by OFAC to a particular applicant, authorizing the specified activity. Another party’s license is not yours.
General licenses may be in the regulations or published separately on a program page. Both kinds can include recordkeeping and reporting conditions. An application is not an approval.[17][11]
Five things to check in a license
- 01
Parties
Which people, entities, banks, or other parties are covered, and which are excluded.
- 02
Activity
Whether it authorizes a remittance, goods, services, or another specified activity.
- 03
Dates
Effective and expiry dates, and any relevant transaction or contract dates.
- 04
Conditions
Any conditions on purpose, amount, project, or other matters.
- 05
Other requirements
Reporting, records, and any other requirements.
This is a reading aid, not the complete conditions of any license. Check the text and applicable regulations.[17]
Where do familiar scenarios raise questions?
Sending money to family
A personal purpose does not establish authorization. Check the recipient, banks, jurisdiction, and whether the program authorizes the remittance.[11]
Donating goods or providing aid
Some programs have relevant licenses or exemptions, with different scopes. Good intentions or a humanitarian label do not establish coverage for every item or party.[18]
Performing an existing contract
Check new restrictions, relevant authorizations, and their dates. An earlier contract does not automatically remove later prohibitions.[10][11]
Buying shares in a listed company
Identify the list and the relevant securities restrictions. Non-SDN does not mean an investment is permitted, and a securities prohibition is not a blanket ban on every activity.[20]
Exemptions and licenses differ
An exemption places certain activity outside a prohibition; a license authorizes activity that would otherwise be prohibited. Both depend on the program, so an exception in one program cannot simply be carried into another.[18]
If you are still unsure, describe the transaction
- Who is involved, including intermediaries and banks?
- What activity is planned, including goods, services, amount, and jurisdictions?
- Which restriction, list, or program may apply?
- Which license would you rely on, and does the transaction meet all its conditions?
Be specific about who is involved, which banks are used, what you want to do, and what remains uncertain. If a specific license is needed, follow OFAC’s current application process. Applying does not mean you have approval.[11]