What is a General License issued by OFAC?

A General License issued by the Office of Foreign Assets Control (OFAC) is designed to authorize categories of transactions that comply with specific regulatory requirements without the need for individual case-by-case approval. This means that within the scope defined by the General License, persons are permitted to engage in transactions that are otherwise prohibited under OFAC regulations, as long as those transactions fall within the specified conditions outlined in the General License.

For example, if OFAC issues a General License for a particular type of trade with a specific country, businesses and individuals can engage in those activities without seeking prior approval from OFAC for each transaction. This approach streamlines processes for legitimate activities while still maintaining the oversight necessary to enforce regulations concerning national security and foreign policy.

In contrast, the other options imply either unrestricted activity or the necessity for individual case assessments, which do not align with the purpose and function of a General License as defined by OFAC.