OFAC Specific License Glossary Part 1
Core terms for the written authorizations OFAC grants to permit transactions that sanctions would otherwise block.
TL;DR
TL;DR: A specific license is a written authorization from OFAC permitting a transaction that would otherwise be prohibited. Without one, a blocked transaction cannot legally proceed, even with good intentions.
What a specific license is
A specific license is a case-by-case written approval issued by OFAC for a particular transaction or party. It differs from a general license, which authorizes a category of activity automatically without an application. When no general license applies, a party must apply for a specific license before completing the transaction. Operating under a mistaken assumption of authorization does not cure a violation, because OFAC enforces strict liability.
Why it matters for agent payments
An AI agent cannot assume a transaction is permitted. If a counterparty is flagged, the agent should block the payment rather than search for a way around it, because only an actual license from OFAC makes the payment lawful. The clean equals ALLOW, flagged equals BLOCK flow in sanctionsai.dev reflects this: a flagged result means stop, and any exception must come from OFAC, not from the agent's own judgment.
Terms covered in Part 1
- Specific license: written approval for one transaction or party.
- General license: automatic authorization for a category of activity.
- License application: the formal request submitted to OFAC.