The U.S. Treasury’s OFAC explains that sanctions range from blocking specific people and entities to broad prohibitions on sectors or entire regions, with licenses for limited exceptions. In practice, governments coordinate lists (blocked persons, sectors), financial rails screen them, and companies check counterparties to stay compliant. Why it matters: sanctions redirect trade and finance flows, raise costs for targeted actors, and signal red lines—yet they work best when coordination is wide and loopholes are limited. Quick guide: know the “50% rule” (ownership), sectoral limits, licensing paths, and secondary risks for global firms.
