What Is an OFAC Settlement?
The settlement concept explained - and why it differs from designation.
Overview
An OFAC settlement resolves alleged sanctions violations: the party pays and commits to compliance improvements. It is a consequence, not a designation - the party remains operational and unblocked.
Settlement vs designation
| Designation | Settlement | |
|---|---|---|
| Status | Blocked (SDN list) | Unblocked |
| Effect | Prohibited transactions | Payment + compliance terms |
| Example | Garantex | Binance ($968M OFAC portion) |
Why the distinction matters
Screening is binary: is the party on the list? A settled company is safe to transact with; a designated one never is. The Binance check page is the worked example.