Define: Specially Designated Nationals And Blocked Persons List

The SDN List is a list maintained by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) that identifies individuals, organisations, and entities that are subject to economic sanctions and other restrictions due to their involvement in activities that pose a threat to national security or foreign policy objectives.

The SDN List is publicly available on the OFAC website. You can access it by visiting their website and searching for the list.

Engaging in any transactions or business dealings with individuals or entities on the SDN List is prohibited and can result in severe penalties, including fines, imprisonment, and restrictions on conducting business with the United States.

To ensure compliance with the SDN List, it is essential to regularly screen your business partners, customers, and vendors against the list. There are various software solutions available that can automate this process and help identify any matches with the SDN List.

Individuals or entities listed on the SDN List can submit a request for removal to OFAC. However, removal is not guaranteed, and it is a complex process that requires demonstrating a change in circumstances or evidence that the listing was made in error.

It is crucial to exercise caution when dealing with individuals or entities that have similar names to those on the SDN List. OFAC recommends conducting additional due diligence to ensure that you are not inadvertently engaging with a blocked person or entity.

While the OFAC regulations do not require knowledge or intent to violate sanctions, if you can demonstrate that you had no knowledge or reason to know that you were dealing with a person or entity on the SDN List, it may be considered a mitigating factor in determining penalties.

OFAC has the authority to add individuals or entities to the SDN List without prior notice. However, they are required to provide notice and an opportunity to respond after the listing has been made.

If you believe that your inclusion on the SDN List is incorrect or unjustified, you can submit a request for reconsideration to OFAC. They will review the request and make a determination based on the evidence provided.

In certain circumstances, OFAC may issue licenses or provide exceptions for specific transactions involving individuals or entities on the SDN List. However, these exceptions are granted on a case-by-case basis and require a thorough review and approval process by OFAC.