OFAC stands for the Office of Foreign Assets Control, which is a division of the US Treasury Department. For car dealerships, OFAC has regulations that prohibit them from doing business with certain individuals or organizations that are on a list of "specially designated nationals" (SDN) or "blocked persons." This means that car dealerships are required to check the names of their customers against the OFAC list to make sure they are not doing business with anyone on the list. If a customer is on the list, the dealership is not allowed to sell a car to them. This is done to help prevent money laundering and support US sanctions against certain people, countries, or organizations.

If a customer is on the OFAC list, the car dealership is not allowed to sell a car to them. The dealership should immediately terminate any transactions with the individual or entity and they should report the attempted transaction to OFAC.

It's important to note that if a dealership is found to have knowingly conducted a transaction with an individual or entity on the OFAC list, it may be subject to severe penalties, including fines and possible criminal prosecution. Therefore, it's crucial for dealerships to have a compliance program in place to ensure they are checking customers' names against the OFAC list, and to properly train their employees on how to handle situations when an individual or entity appears on the list.