U.S. Sanctions Compliance (OFAC Essentials)

U.S. Sanctions Compliance (OFAC Essentials) is a practical introduction to how U.S. economic sanctions operate and what they require from regulated financial institutions. As Course 4 of 6 in the StudyAML United States Series, it focuses on the role of the Office of Foreign Assets Control (OFAC) and the real-world decisions firms and employees must make every day. The course explains how sanctions risk arises, how it is controlled, and what happens when controls fail. Clear expectations. Practical judgement. Regulatory confidence.

20 - 25 minutes

Certificate Included

United States

Description

This self-paced course provides essential training on U.S. sanctions compliance, with a specific focus on the requirements administered by the Office of Foreign Assets Control (OFAC). Designed to be completed in approximately 20 to 25 minutes, the course is suitable for professionals working in compliance, AML, financial crime, risk management, operations, and governance roles. The course explains how U.S. sanctions fit within the broader international framework, including alignment with Financial Action Task Force (FATF) standards on targeted financial sanctions and counter-proliferation financing. Learners will explore the different types of U.S. sanctions programs, including country-based, list-based, and sectoral sanctions, and understand how these programs translate into practical obligations for firms. Through realistic examples and scenarios, the course focuses on how sanctions compliance works in practice. This includes screening expectations, handling alerts, distinguishing false positives from true matches, escalation requirements, and documentation standards. Learners will also review enforcement trends and penalties to understand regulatory expectations and the consequences of weak controls. By the end of the course, learners will be able to apply sound judgement, recognise sanctions risk, and respond appropriately within the U.S. regulatory framework.

What will you learn?

Module 1 — Overview of OFAC’s RoleYou will understand the role of OFAC within the U.S. regulatory framework, how U.S. sanctions support national security and foreign policy objectives, and why financial institutions are critical gatekeepers. The module also explains where to find authoritative OFAC guidance and how U.S. sanctions align with international standards.
Module 2 — Types of Sanctions ProgramsYou will learn how U.S. sanctions programs are structured, including country-based sanctions, list-based sanctions such as the SDN List, and sectoral sanctions. The module focuses on how to identify which sanctions regime applies and how a risk-based approach supports correct decision making.
Module 3 — Key OFAC ProhibitionsYou will explore core OFAC prohibitions, including blocking, rejecting, facilitation, and evasion or avoidance. This module emphasises behavioural expectations, escalation, and documentation, helping learners understand what actions are prohibited and why intent is not required for a violation.
Module 4 — Sanctions ScreeningYou will learn what must be screened, when screening must occur, and how name, country, and transaction screening work together. The module explains fuzzy matching challenges, the limits of technology, and the importance of human judgement in meeting regulatory expectations.
Module 5 — Handling Hits vs. True MatchesYou will develop the skills to review sanctions alerts confidently, distinguish false positives from true matches, and apply ownership and control principles such as the 50 Percent Rule. The module reinforces escalation thresholds and defensible documentation practices.
Module 6 — Penalties and EnforcementYou will review OFAC enforcement actions, common control failures, and the types of penalties firms may face. This module connects enforcement outcomes to governance, training, and individual accountability, reinforcing how strong compliance culture reduces sanctions risk.