What does OFAC check stand for?

An OFAC check is a compliance check procedure during which it is verified whether companies or individuals are participating in sanctioned transactions. This check can be performed manually or automatically (e.g., in banking systems) before conducting a transaction, hiring employees, signing contracts, etc. The main goal is to eliminate the risk of interacting with entities that are on the sanctions lists. Failure to perform this check may result in fines of hundreds of thousands of dollars, even if the violation was unintentional.