What is OFAC?

OFAC is the US Office of Foreign Assets Control. It publishes sanctions lists. If a customer, a beneficiary, or a bank is on a list, you cannot send or hold that payment. The screen happens in your app or at the bank. The ledger records the transfer you were allowed to post, or the one you blocked and never sent.

How does an OFAC check work?

Before you originate, you screen the names, addresses, and bank identifiers. A hit goes to review. A confirmed match does not ship. Some banks screen again on their side and will reject a send you thought was clean. You still need your own check if you assemble the payment.

OFAC vs AML

OFAC is a list. AML is a pattern. A customer can pass KYC and still fail OFAC when they add a new beneficiary. Screen the beneficiary, not only the wallet owner.

What do you post on a hit?

Nothing to the rail. If you already held the wallet inflight, void it. If you need to keep the funds while legal reviews, move them to a sanctioned-hold balance. Do not leave them spendable.

How it works with Blnk

Run the screen before you call Blnk to send. If a hold already exists and the screen fails, void it. Store the screening id on the identity or the payout method.