Hedera Hashgraph, LLC is a US-incorporated company and will therefore comply with any sanctions promulgated by the US Office of Foreign Assets Control (OFAC) with respect to anyone it does business with directly, e.g., new Council Members, direct hbar purchasers, grant recipients, etc.
With respect to the network itself, the Council does not have the ability to freeze or delete accounts; however, individual node operators may filter transaction instructions sent to them by users based on IP address. The Council has approved a policy whereby all Council Members will filter transaction instructions from a small set of comprehensively embargoed jurisdictions by OFAC, while any other filtering for compliance with local regulations or for ethical reasons is at the discretion of the node operator.
It is important to note that nodes do not filter traffic from other nodes, so if any node accepts transaction instructions from a user and distributes the transaction for consensus processing, the transaction will be validated.