What does OFAC stand for?

The correct answer is C, which stands for Office of Foreign Assets Control. This is a division of the U.S. Department of the Treasury that administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals. The primary role of OFAC is to target specific foreign countries and regimes, terrorists, international narcotics traffickers, and those involved in activities related to the proliferation of weapons of mass destruction. By controlling assets and imposing sanctions, OFAC aims to promote U.S. interests and maintain compliance with national regulations.

Understanding the purpose and function of OFAC is essential for compliance training in the banking sector, as financial institutions must ensure they are not conducting transactions with individuals or entities that are subject to these sanctions. This understanding reinforces the importance of compliance with U.S. laws and regulations regarding foreign assets and the broader implications for national security.