What is the core function of the Office of Foreign Assets Control (OFAC)?

The core function of the Office of Foreign Assets Control (OFAC) is to administer and enforce economic and trade sanctions based on U.S. foreign policy. This agency operates under the U.S. Department of the Treasury and is responsible for implementing sanctions programs against foreign nations, organizations, and individuals that are deemed a threat to U.S. national security or foreign policy interests.

By enforcing these sanctions, OFAC aims to achieve specific foreign policy goals, such as counterterrorism, non-proliferation of weapons of mass destruction, and promoting human rights. Sanctions can involve freezing assets, prohibiting any financial transactions, and restricting trade, which are critical tools in foreign policy to influence the behavior of targeted entities.

The other choices represent functions that fall outside the scope of what OFAC does. Supervising the stock market pertains to regulatory bodies that specifically oversee securities markets and protect investors, while overseeing business mergers involves antitrust regulatory functions. Providing loans to small businesses is typically the purview of financial institutions and development programs, not a function associated with OFAC.