Yes. Every transaction facilitated in U.S. Dollars is processed through the U.S., and is therefore subject to OFAC regulations. Banks processing the transaction have an obligation to freeze funds from being transferred to sanctioned parties or face penalties themselves. To avoid this possibility, and a potential OFAC violation, screening is recommended.

International financial agencies also have their own lists, so screening can help avoid fines and other penalties from global regulatory and enforcement bodies.

Yes. The United States is not the only country that maintains watch lists of denied and restricted parties, and sanctioned entities. Many countries maintain similar lists of their own—for instance, the Government of Canada’s Office of the Superintendent of Financial Institutions (OFSI)—as do international organizations like the United Nations and the World Bank.