True or False: OFAC may allow certain otherwise prohibited transactions through a licensing process.

The statement is true because the Office of Foreign Assets Control (OFAC) does have a licensing process that allows certain transactions that would normally be prohibited under U.S. sanctions. This mechanism is critical for maintaining a balance between enforcing national security measures and allowing for specific, essential transactions that may be deemed allowable under certain circumstances. For example, individuals or entities may apply for a license to engage in a transaction that would otherwise be restricted if they can demonstrate a compelling reason, such as humanitarian aid or essential imports.

Licenses can be granted on a case-by-case basis, allowing for flexibility within the framework of compliance. This licensing process is essential for businesses and individuals who may need to navigate the complexities of U.S. sanctions while still adhering to the applicable laws. Without such a licensing mechanism, the sanctions regime would be too rigid to accommodate legitimate activities that align with U.S. foreign policy objectives or humanitarian needs.