What kind of transactions might OFAC prohibit under its regulations?

The correct answer highlights that OFAC (Office of Foreign Assets Control) prohibits all transactions with unauthorized parties, which encompasses a broad range of potential financial activities. OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals. These sanctions target specific countries, regimes, individuals, or entities, preventing U.S. persons from engaging in transactions with those identified as unauthorized.

By prohibiting transactions with unauthorized parties, OFAC ensures that individuals and entities comply with U.S. laws and prevent any transactions that could aid in unlawful activities, such as terrorism or the proliferation of weapons of mass destruction. This approach to regulation applies not only to international transactions but also to domestic dealings involving parties that have been designated or sanctioned by OFAC.

The other options are more limited in scope. Statements that suggest only international transactions or financial transactions are prohibited misrepresent the broad applicability of OFAC's mandates. Additionally, the notion that domestic transactions with authorized parties are prohibited contradicts OFAC’s primary focus on preventing engagement with those entities that are on sanctioned lists. Understanding this comprehensive prohibition is crucial for compliance with regulations set forth by OFAC.