Specially Designated Nationals (SDN) List
What the SDN List is, who's on it, and why SDN screening is critical for KYB compliance.
2 min read
The Specially Designated Nationals and Blocked Persons List (SDN List) is OFAC’s primary sanctions list, containing individuals and entities with whom US persons are generally prohibited from conducting business.
Who’s on the SDN List
- Terrorists: Designated under terrorism programs
- Narcotics traffickers: Major drug trafficking organizations
- Proliferators: Weapons of mass destruction proliferation
- Sanctions targets: Individuals/entities under country-specific sanctions
- Human rights abusers: Under Global Magnitsky and related programs
Consequences of SDN Designation
- Asset blocking: Assets within US jurisdiction are frozen
- Transaction prohibition: US persons cannot transact with SDN parties
- Secondary sanctions: Some programs extend to non-US persons
SDN Screening in KYB
For KYB, SDN screening must cover:
| Party | Reason |
|---|---|
| Business entity | Direct designation |
| Beneficial owners | 50% ownership rule applies |
| Directors/officers | Control by SDN parties |
The 50% Rule
Entities owned 50% or more (directly or indirectly) by one or more SDN parties are themselves blocked, even if not individually listed.
Ongoing Monitoring
The SDN List updates frequently. Ongoing monitoring—not just onboarding screening—is essential to catch new designations affecting existing customers.
SDN List: https://ofac.treasury.gov/sdn-list
Related: OFAC | Sanctions Screening | Watchlist Screening