OFAC (Office of Foreign Assets Control) is the U.S. Treasury office that administers and enforces U.S. economic sanctions. It operates under statutes and presidential authorities (notably the International Emergency Economic Powers Act, IEEPA, and the Trading with the Enemy Act) and issues regulations, blocks property, and adds persons/entities to sanctions lists to advance U.S. foreign policy and national security goals.
Executive Order 13224 (issued after 9/11) authorizes the U.S. government to block property and prohibit transactions with persons who commit, threaten to commit, or support terrorism. OFAC uses E.O. 13224 to designate terrorists and their facilitators (freezing U.S.-based assets and forbidding U.S. persons from dealing with them).
The SDN (Specially Designated Nationals) List is OFAC’s public list of individuals, groups, and entities (e.g., terrorists, narcotics traffickers, front companies) whose U.S.-based assets are blocked; U.S. persons are generally prohibited from transacting with SDNs.
"Blocked property" means any property or interests in property in which a designated person has an interest that are within U.S. jurisdiction; U.S. persons must freeze (block) such assets and generally may not transfer, pay, or deal in them without an OFAC license.
Al‑Qard al‑Hassan (AQAH) is a network of Lebanon-based charitable/credit societies associated with Hizballah that provide savings, loans and cash services (often interest‑free) to communities and Hizballah members; it functions informally as a parallel banking and social-support mechanism and can be used to move and convert value (including gold) outside formal banking channels.
Sanctions against AQAH-linked firms that convert gold or run informal finance networks can reduce avenues for converting assets into cash, prompt correspondent banks and foreign institutions to restrict services to Lebanese counterparts (de‑risking), and aggravate existing cash shortages — meaning ordinary Lebanese who rely on cash, money exchanges, or community credit may face reduced access to services, longer delays, and higher costs.
Secondary sanctions are measures the U.S. can apply to foreign persons or institutions that knowingly facilitate significant transactions for designated parties (e.g., blocking access to U.S. correspondent banking, denying U.S. market access). They create incentives for banks and companies worldwide to avoid dealing with designated entities to protect U.S. access and services.
A designated person or entity can petition OFAC for removal (a "delisting" petition) under OFAC’s procedures (see 31 C.F.R. §501.807). OFAC’s website explains how to file a petition and the documentation and review process for seeking removal from the SDN List.