What Is The Specially Designated Nationals And Blocked Persons List?
In order to carry out its duties, the Office of Foreign Assets Control (OFAC) produces the Specially Designated Nationals and Blocked Persons list – also known as the OFAC SDN list.
The OFAC SDN list represents an essential tool in the fight against money laundering and terrorist financing in the United States and around the world. It forms part of the US Treasury’s Selective Sanctions policy in which specific individuals and organizations involved in certain criminal activities are penalized, as opposed to the more comprehensive approach of sanctioning entire nations.
The Specially Designated Nationals and Blocked Persons List is updated regularly with the names of individuals, entities, and organizations deemed to be involved in a range of criminal activities. US Persons (US citizens and permanent resident aliens regardless of location, US incorporated entities and their foreign branches, and in some circumstances their subsidiaries) are prohibited from doing business with anyone on the OFAC SDN list – and should check the list to ensure they are not in breach of the law if there is any uncertainty. Businesses should conduct checks prior to establishing a relationship with the person or entity, or conducting transactions with them, and periodically throughout the relationship.