OFAC Attorney: OFAC is the federal agency responsible for the administration, implementation, and enforcement of economic sanctions. This means that OFAC drafts regulations, directives, and executive orders related to economic sanctions. OFAC also has an enforcement function where it carries out investigations into possible violations of sanction regulations. The agency also levies financial penalties and negotiates settlements with those it has determined have violated its rules. OFAC’s enforcement functions are primarily carried out by its Compliance Division and its Office of Enforcement. The Compliance Division focuses on financial institutions and banks, while the Office of Enforcement carries out enforcement actions against everyone else. OFAC also has a Licensing Division that evaluates applications submitted by people and businesses to determine whether otherwise prohibited transactions are consistent with the U.S. foreign policy and national security objectives.