Which statement about OFAC actions is true?

• A. OFAC only blocks physical assets, not financial accounts
• B. OFAC blocks assets only outside the United States
• C. Assets and accounts can be blocked (frozen) for designated persons and entities
• D. OFAC prohibits all charitable activities

Answer: (C)

OFAC enforces sanctions by blocking property. When a person or entity is designated, OFAC can freeze any property interests they hold that are within U.S. jurisdiction or controlled by U.S. persons. This includes financial accounts, cash, securities, and other assets, not just physical items. The freeze means no one can transfer, pay, or deal with that blocked property unless a specific license is issued. Because the blocking applies to property under U.S. jurisdiction or controlled by U.S. persons, it can affect assets and accounts regardless of where they are located.

The other statements don’t fit because OFAC’s blocking isn’t limited to physical assets, nor to assets outside the United States, and sanctions do not blanket-prohibit all charitable activities— licenses and exceptions can apply for charitable work under certain conditions.