The Specially Designated Nationals (SDN) List is a compilation maintained by the Office of Foreign Assets Control (OFAC) of individuals, entities, and organizations with whom U.S. persons are prohibited from conducting business due to their association with targeted countries, regimes, or activities that threaten U.S. national security, foreign policy, or economy.
Key Points:
- Purpose: The SDN List is a tool used by OFAC to enforce economic and trade sanctions by identifying individuals and entities engaged in activities such as terrorism, narcotics trafficking, and proliferation of weapons of mass destruction.
- Legal Implications: U.S. persons, including businesses and financial institutions, must ensure they do not engage in transactions with any party listed on the SDN List. Violations can result in severe legal and financial penalties.
- Screening: Businesses and financial institutions must implement robust screening processes to check customers, vendors, and partners against the SDN List to ensure compliance with OFAC regulations.
- Updates: The SDN List is regularly updated to reflect new designations and removals. Entities and individuals can be added or removed based on changes in their behavior or status.
- Penalties for Non-Compliance: Failure to comply with OFAC regulations regarding the SDN List can result in substantial fines, asset seizures, and other legal consequences.
Importance:
The SDN List is essential for maintaining the integrity of the U.S. financial system and supporting international security efforts. Compliance with the SDN List is a key component of any organization’s anti-money laundering (AML) and counter-terrorist financing (CTF) program.
For more information and to access the SDN List, visit the OFAC SDN List page: https://sanctionslist.ofac.treas.gov/Home/SdnList
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