OFAC FAQ (Current) # 32 - Blocking and Rejecting Transactions

Date issued: Sep. 10 2002

Last substantive commentary amendment:
Apr. 02 2024

TURBOFAC Commentary (150 words)

Notes:

Refer to e.g. Civil Enforcement Information (FOV) - Visa International Service Association (2013), suggesting that real penalties may be in the pipeline for entities failing to comply with the 10-day rule and other procedures set out concerning the reporting and blocking of property. Consistent with the VISA case, this FAQ appears to stand for the proposition that the 10 day clock starts from the point at which a U.S. person realizes that property within its possession or control actually needs to be blocked, not 10 days after property already within the possession or control of a U.S. person becomes blocked by operation of law.

Once it has been determined that funds need to be blocked, they must be placed into an interest-bearing account on your books from which only OFAC-authorized debits may be made. The blocking also must be reported to OFAC Compliance within 10 business days.