OFAC for Czech businesses: when a closer assessment is needed

Applicability is not just about currency

OFAC FAQ 11 describes duties of US persons, persons in the US and US companies including foreign branches. Some programmes cover foreign subsidiaries owned or controlled by US persons. Non-US persons may also face prohibitions, including causing US sanctions violations. Verify definitions and conditions in the specific programme.

Dollar payments may pass through US banks, but the label USD is not a complete legal test. Map the route, banks, participants and origin of goods or technology. Changing currency or intermediary alone does not resolve jurisdiction or anti-evasion rules. Prepare the actual transaction map rather than assuming Czech incorporation removes US connections.

SDN and non-SDN have different meanings

Sanctions List Service provides SDN and consolidated non-SDN files. Their legal effects are not automatically identical. Retain the list, programme tag and original identifier. After identity resolution, establish the restrictions on the intended action. Name-similarity scores do not determine legal effects, and a public search tool does not authorise transactions.

Ownership analysis must use the relevant regime’s rule. OFAC FAQ 398 distinguishes the 50 Percent Rule from control alone and flags other restrictions. Do not automatically apply this test to the EU. Negative company-name screening does not replace checking owners and known representatives.

Separate law from bank terms

Banks may impose broader contractual restrictions and risk policies. Record them separately from statutory prohibitions. Bank or management approval does not guarantee compliance. Cross-border conflicts require analysis of the US programme and concurrent EU rules. Verify exceptions’ timing and scope; applying for authorisation does not equal receiving it.

Evidence for deeper assessment

For expert assessment, prepare an exact transaction description and all known US links. Include goods or services, participants, ownership shares, banks, payment route, performance dates and the matched programme. Separate verified facts from assumptions. Asking whether a client is acceptable without describing the intended action produces a general answer that may not cover the actual transaction. The conclusion must address specific performance under specific conditions.

Record the evidence scope and currency in the conclusion. If the bank, owner or ultimate recipient changes later, reassess its applicability. Do not try to remove a match merely by disabling the US source in an application: this changes screening scope, not legal circumstances. If no US link is established, explain that separately and preserve the necessary CZ, EU and UN checks.