Do I need to worry about both for my business?

[soumitss]

What's the difference between OFAC compliance and FinCEN compliance? Do I need to worry about both for my business?

[hydrogenn]

OFAC and FinCEN are both Treasury Department divisions but serve different functions. OFAC administers economic sanctions - blocking transactions with sanctioned parties. FinCEN focuses on anti-money laundering (AML) and combating financial crimes through reporting requirements like SARs (Suspicious Activity Reports) and CTRs (Currency Transaction Reports). Both are important for financial compliance but address different risks. OFAC compliance involves screening transactions and parties against sanctions lists. FinCEN compliance involves customer due diligence, transaction monitoring for suspicious patterns, and regulatory reporting. Some businesses must comply with both - for example, banks need robust programs for each. The obligations depend on your business type. I found a good comparison of requirements on ofacblockedfundslawyers.com. Violations of either can result in significant penalties, so understanding which applies to your operations is critical.