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FAR and DFARS › FAR Part 25: Foreign Acquisition › Subpart 25.7

FAR 25.701 Restrictions administered by the Department of the Treasury on acquisitions of supplies or services from prohibited sources.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This section tells agencies, contractors, and subcontractors that they cannot acquire supplies or services when OFAC-administered sanctions would prohibit the transaction, unless OFAC authorizes it. It matters because it puts the burden on contractors and subcontractors to avoid transactions involving prohibited sources, including most dealings involving Cuba, Iran, and Sudan and most imports from Burma or North Korea.

Applies to: Agencies and their contractors and subcontractors acquiring supplies or services

What it requires

  • Do not acquire supplies or services if an OFAC-administered proclamation, Executive order, statute, or 31 CFR Chapter V regulation would prohibit the transaction, unless OFAC authorizes it
  • Refer questions about these restrictions to the Department of the Treasury, Office of Foreign Assets Control

Key terms: OFAC · prohibited sources · 31 CFR Chapter V · List of Specially Designated Nationals and Blocked Persons · outlying areas

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

(a) Except as authorized by OFAC, agencies and their contractors and subcontractors must not acquire any supplies or services if any proclamation, Executive order, or statute administered by OFAC, or if OFAC's implementing regulations at 31 CFR Chapter V, would prohibit such a transaction by a person subject to the jurisdiction of the United States.

(b) Except as authorized by OFAC, most transactions involving Cuba, Iran, and Sudan are prohibited, as are most imports from Burma or North Korea into the United States or its outlying areas. In addition, lists of entities and individuals subject to economic sanctions are included in OFAC's List of Specially Designated Nationals and Blocked Persons at https://ofac.treasury.gov/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists More information about these restrictions, as well as updates, is available in OFAC's regulations at 31 CFR Chapter V and/or on OFAC's website at https://ofac.treasury.gov/

(c) Refer questions concerning the restrictions in paragraphs (a) or (b) of this section to the Department of the Treasury, Office of Foreign Assets Control, Washington, DC 20220, (Telephone (202) 622-2490).

← 25.700 Scope of subpart. · 25.702 Prohibition on contracting with entities that conduct restricted business operations in Sudan. →

Rule changes for FAR Part 25

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 25.701 Restrictions administered by the Department of the Treasury on acquisitions of supplies or services from prohibited sources · SpendQuery