True or False: OFAC may grant permission for certain otherwise prohibited transactions through a licensing process.

The statement is true because the Office of Foreign Assets Control (OFAC) has the authority to grant specific licenses that allow for transactions that would otherwise be prohibited under its regulations. This licensing process is a way for OFAC to provide exceptions to the general prohibitions established by economic sanctions. Through this process, individuals and entities can formally request permission to engage in certain activities that are restricted, such as sending funds or entering into contracts with designated individuals or entities.

The licensing process ensures that these transactions are assessed on a case-by-case basis, taking into account national security interests and foreign policy objectives. This flexibility allows for legitimate transactions to occur in specific situations while still maintaining the overall framework of sanctions.