New Zealand is obligated to sanctions issued by the United Nations. The sanctions typically prohibit economic and trade, as well as arms embargoes, travel and diplomatic restrictions against individuals, entities or countries known or suspected of threatening international peace and security.  This means New Zealand citizens, residents and businesses are prohibited from providing certain goods or conducting transactions with those listed on UN Sanctions.   Further information on UN Sanctions can be found at the Ministry of Foreign Affairs & Trade website – www.mfat.govt.nz. 

When conducting transactions in foreign currencies, compliance of any sanctions that apply to that currency should also be adhered to.  When undertaking USD transactions it is a requirement to comply with the OFAC sanctions (Office of Foreign Assets Control).   Under the US PATRIOT Act, the US has extra-territorial reach and if transactions are conducted in breach of the OFAC sanctions, the funds can be frozen and significant penalties incurred.  Recent cases  against banking institutions for non-compliance of OFAC have ranged between USD5 million to USD350 million.