What are the rules imposed by the Office of Foreign Assets Control (OFAC) for legal entities and persons related to the US? (Select Two.)

Question

Options

• AA subsidiary of a legal entity of the US, which is formally registered in a foreign country, is exempt
• BNationals of the US must comply with OFAC rules, regardless of where they are located in the
• CA foreign individual visiting the US for a short vacation is obligated to follow OFAC rules.
• DAny foreign corporation is also penalized if it conducts transactions with sanctioned countries
• EThe head office of a foreign legal entity which has a branch in the US does not need to comply

• A
  4% (2)
• B
  71% (32)
• C
  18% (8)
• E
  7% (3)

Explanation

The rules imposed by the Office of Foreign Assets Control (OFAC) for legal entities and persons related to the US are: Nationals of the US must comply with OFAC rules, regardless of where they are located in the world. This means that US citizens, permanent residents, and entities organized under US law are subject to OFAC sanctions and prohibitions, even if they operate or reside outside the US. Any foreign corporation is also penalized if it conducts transactions with sanctioned countries under OFAC rules. This means that non-US entities that engage in trade or financial dealings with OFAC-designated countries, entities, or individuals are liable to face civil or criminal penalties, as well as secondary sanctions that could restrict their access to the US market or financial system.

No community discussion yet for this question.