Financial sanctions and visa restrictions in US law
- Financial sanctions law
- International Emergency Economic Powers Act, 50 U.S.C. 1702 1
- Financial sanctions agency
- Office of Foreign Assets Control (OFAC), US Treasury 2
- Main visa grounds
- INA 212(a)(3)(C), INA 212(f) proclamations and section 7031(c) 5
- Effect of blocking
- Property is frozen, not seized, and title stays with the blocked person 2
- Effect of a visa bar
- The person is ineligible for a visa or entry 5
- Visa records
- Confidential under 8 U.S.C. 1202(f), with set exceptions 4
What financial sanctions do
Under 50 U.S.C. 1702(a)(1)(B), the President may block property in which a foreign country or foreign national has any interest, where the property is subject to US jurisdiction 1. The President may regulate, nullify, void, prevent or prohibit its use, transfer or other dealings 1.
OFAC, a Treasury office, administers and enforces these sanctions 2. OFAC says blocking means freezing and is not the same as seizing 2. Blocked property may not be transferred, withdrawn or otherwise dealt in, and title stays with the blocked person 2. A party holding blocked property must report it to OFAC within 10 business days 2.
All U.S. persons must comply, including U.S. citizens and permanent residents wherever they are, anyone in the United States, and U.S.-incorporated entities and their foreign branches 2. Violations may result in civil and, in some cases, criminal penalties 2.
What financial sanctions do not do
Section 1702(b) of IEEPA limits the President's power 1. The power does not reach the following, directly or indirectly 1.
- Personal communications that do not involve a transfer of anything of value 1.
- Donations of food, clothing and medicine for humanitarian purposes, subject to stated limits 1.
- Informational materials such as publications, films and artworks, in any format 1.
- Transactions ordinarily incident to travel, such as living expenses and arranging travel 1.
What visa restrictions do
Under INA 212(a)(3)(C), codified at 8 U.S.C. 1182(a)(3)(C), a person is inadmissible where the Secretary of State has grounds to believe that the person's entry or proposed activities would have "potentially serious adverse foreign policy consequences for the United States" 3. Foreign officials and candidates cannot be excluded on this ground solely for lawful beliefs, statements or associations 3. For other people, that bar can be set aside only where the Secretary personally finds that admission would compromise a compelling US foreign policy interest, and Congress must be told 3.
Under section 7031(c), foreign officials and their immediate family members are ineligible for entry where the Secretary of State has credible information of significant corruption or a gross violation of human rights 5. The Secretary designates such people publicly or privately, whether or not they have applied for a visa 5. Immediate family members include spouses and children of any age 5.
Under INA 212(f), the President may suspend entry where entry would be detrimental to the interests of the United States 5. Presidential Proclamation 8693 suspends entry of people designated under IEEPA 5.
Side by side
| Point | Financial sanctions (IEEPA) | Visa restrictions |
|---|---|---|
| Agency | OFAC, US Treasury 2 | Department of State 5 |
| What it does | Blocks property and bars dealings by U.S. persons 1,2 | Makes a person ineligible for a visa or entry 5 |
| Who must act | All U.S. persons 2 | The Department of State, when it decides visa eligibility 5 |
| Public or private | Delistings are published in the Federal Register 6 | 7031(c) designations can be public or private 5 |
| Waiver | OFAC can issue general and specific licenses 2 | None under 212(a)(3)(C). Available under 7031(c) 5 |
| Removal | Petition to OFAC under 31 CFR 501.807 6 | 7031(c) waiver for compelling national interest or changed circumstances 5 |
Confidentiality of visa decisions
Under 8 U.S.C. 1202(f), State Department and consular records on the issuance or refusal of visas are confidential 4. They may be used only to administer or enforce US immigration, nationality and other laws 4. The Secretary of State may give certified copies to a court that certifies the information is needed in a pending case 4. The Secretary may share some information with foreign governments on a reciprocal basis 4.
Common questions
Does a visa ban freeze someone's money?
No. A visa restriction makes a person ineligible for a visa or entry 5. Freezing property is done by blocking under IEEPA, which OFAC administers 1,2.
Can a person on the SDN List get a US visa?
Presidential Proclamation 8693 suspends entry of people designated under IEEPA, and 9 FAM says no waiver is available for that ground 5.
Are family members covered?
Under section 7031(c), immediate family members of a designated official are ineligible for entry, including spouses and children of any age 5.
Are visa refusals public?
Visa records are confidential under 8 U.S.C. 1202(f). Section 7031(c) designations can be public or private 4,5.
Can someone ask to be removed?
A sanctioned person can petition OFAC for removal 6. Under 7031(c), a waiver is possible for a compelling national interest or changed circumstances 5.
Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email [email protected] with the official link.
Sources
- U.S. Code (govinfo, 2023 edition): 50 U.S.C. 1702, Presidential authorities
- OFAC: Frequently Asked Questions, Basic Information on OFAC and Sanctions (accessed 20 October 2026)
- U.S. Code (govinfo, 2023 edition): 8 U.S.C. 1182, Inadmissible aliens
- U.S. Code (govinfo, 2023 edition): 8 U.S.C. 1202, Application for visas
- U.S. Department of State: 9 FAM 302.14, Ineligibility based on sanctioned activities (Foreign Affairs Manual, accessed 20 October 2026)
- OFAC: Frequently Asked Questions, Specially Designated Nationals and the SDN List, including FAQ 897 (accessed 20 October 2026)
Related
- OFAC sanctions explained
What OFAC sanctions are, the legal basis under IEEPA, the SDN List, blocking, the 50 percent rule, licenses and how delisting works.
- US visa restrictions under INA section 212(a)(3)(C)
How the foreign policy visa ground in 8 U.S.C. 1182(a)(3)(C) works, who decides, how visa records are kept confidential and what it covers.
- Section 7031(c) designations explained
How Section 7031(c) of the annual State Department appropriations act bars officials and their families from US entry and how it differs from OFAC.
- Global Magnitsky sanctions explained
The Global Magnitsky Act of 2016 and Executive Order 13818: who can be designated, what designation does, and examples from Treasury releases.
- How sanctions delisting works: OFAC, UK, EU and UN
The official routes to ask for removal from OFAC, UK, EU and UN sanctions lists: who to apply to, what to send, review steps and court options.
- The UK Global Anti-Corruption Sanctions Regulations 2021
What the UK Global Anti-Corruption Sanctions Regulations 2021 do, who can be designated, the measures that apply and how to check a name.
- The EU Global Human Rights Sanctions Regime
The EU Global Human Rights Sanctions Regime: its legal basis, the abuses it covers, the travel ban and asset freeze, how listing works and current numbers.