What defines a Specific License issued by OFAC?

A Specific License issued by the Office of Foreign Assets Control (OFAC) is a form of case-by-case authorization that allows interested parties to engage in transactions that would otherwise be prohibited under the regulations enforced by OFAC. This means that, rather than being a blanket exemption, a Specific License is carefully evaluated and granted based on the unique circumstances surrounding the request.

Organizations and individuals must submit an application to request a Specific License, detailing the specific transactions they wish to engage in and the reasons for the request. Each application is reviewed on its own merits, ensuring that any potential risks associated with the transaction are thoroughly considered. If granted, this license permits the specified actions without violating OFAC's sanctions.

This contrasts sharply with the other options; for instance, licensing is not solely reserved for licensed institutions, nor is it automatically given to all applicants. Additionally, Specific Licenses are built on substantial regulatory requirements, ensuring compliance with U.S. law and national security considerations.