Compliance
OFAC (Office of Foreign Assets Control)
Definition
A US Treasury Department agency administering economic sanctions. OFAC sanctions lists are checked by operators as part of CDD and ongoing screening.
Key takeaways
- OFAC is the US Treasury office that administers and enforces US economic sanctions.
- Operators screen customers against its Specially Designated Nationals list at onboarding and re-screen as the list is updated.
- Banks, payment providers and suppliers commonly require OFAC compliance, so it is standard practice well beyond US-licensed operators.
Why it matters
OFAC sanctions are a foundational compliance check in any gambling operator's CDD workflow, particularly for operators serving US players or operating from US-aligned jurisdictions. The OFAC Specially Designated Nationals (SDN) list and various country-specific sanctions programmes identify individuals and entities prohibited from US-facing transactions. Operators screen registration data against OFAC lists at onboarding and re-screen periodically against updated lists.
Beyond US operators, OFAC compliance affects broader gambling industry counterparties. PSPs and banks supporting gambling activity typically require OFAC compliance from operator clients. Suppliers serving US operators carry OFAC obligations themselves. The combined effect is that OFAC compliance is industry-standard practice across major international operators, not just those directly subject to US jurisdiction. Sanctions enforcement is one of the most actively enforced US compliance regimes, with penalties for violations running into billions of dollars across regulated industries.
Sources
- About OFAC - US Department of the Treasury, Office of Foreign Assets Control
- OFAC FAQs: blocked persons and the SDN List - US Department of the Treasury, Office of Foreign Assets Control
Frequently asked questions
Are non-US operators subject to OFAC?
Direct OFAC jurisdiction is over US persons and US-touching transactions. Indirect application reaches non-US operators through banking and payment relationships, USD-denominated transactions, and partnerships with US-licensed entities. Most major international operators apply OFAC screening regardless of direct jurisdiction.
How often do operators re-screen against OFAC?
At onboarding for all new players, ongoing for the existing customer base on a schedule (typically daily for active accounts, periodic for dormant), and on demand when OFAC list updates affect specific customer records. Modern compliance tooling automates the re-screening process.