OFAC Licensing FAQs
Answers to common questions about OFAC sanctions and licensing, and how screening fits before any licensed or unlicensed payment.
TL;DR
TL;DR: OFAC may authorize certain otherwise blocked activity through licenses, but most agent payments run without one. Screening blocks flagged counterparties so you are not relying on an absent license.
Where licensing fits
OFAC can issue licenses that permit specific activity that would otherwise be prohibited, but a license is an exception, not the default. A screening result of BLOCK reflects a counterparty on the SDN List, and the safe default is to stop the payment unless a specific authorization clearly applies. Precise licensing procedures are not documented here.
Common questions
- Does screening replace a license? No. Screening flags the counterparty; a license, if one exists, is a separate legal determination.
- What should an agent do on a match? Block, preserve records, and escalate to compliance rather than assuming a license applies.
- How fast is the check? One HTTP call in under 100 ms, returning ALLOW or BLOCK.