SanctionsLookupOFAC SDN List: What It Is and Why It Matters
The Specially Designated Nationals (SDN) List is a U.S. sanctions list maintained by the Office of Foreign Assets Control (OFAC). It identifies individuals, companies, and other entities subject to blocking sanctions under U.S. law.
U.S. persons are generally prohibited from dealing with parties on the SDN List, and their property within U.S. jurisdiction must be blocked. The SDN List is one of the primary tools used to enforce U.S. foreign policy and national security objectives through economic sanctions.
What does SDN stand for?
SDN stands for Specially Designated Nationals. The term refers to individuals, companies, vessels, and other entities that have been designated by OFAC under U.S. sanctions programs.
Parties identified as SDNs are placed on the SDN List and become subject to blocking sanctions and transaction prohibitions under U.S. law.
What is the purpose of the SDN list?
The purpose of the SDN List is to support U.S. foreign policy and national security objectives by restricting access to the U.S. financial system for designated parties. It is a key enforcement tool used to implement economic and trade sanctions against individuals, entities, and networks involved in activities such as terrorism, proliferation, corruption, and other threats.
By publicly identifying sanctioned parties, the SDN List enables financial institutions and businesses to screen transactions and prevent prohibited dealings.
Who is included on the SDN list?
The SDN List includes individuals and entities designated under various U.S. sanctions programs administered by OFAC.
Individuals
Individuals on the SDN List may include government officials, political leaders, or military personnel linked to sanctioned regimes. It can also include terrorists, narcotics traffickers, proliferators of weapons of mass destruction, and persons involved in corruption or human rights abuses.
Once designated, the individual becomes subject to blocking sanctions and transaction prohibitions under U.S. law.
Companies and entities
Companies, partnerships, financial institutions, state-owned enterprises, and other legal entities may be added to the SDN List if they are owned or controlled by sanctioned parties, act on behalf of sanctioned parties, or materially support designated persons or governments.
Designation typically results in blocked property and a prohibition on dealings by U.S. persons.
Vessels and aircraft
Vessels and aircraft may be listed when they are used to facilitate sanctioned activities, such as transporting restricted goods or supporting blocked entities. Ships linked to sanctions evasion, illicit trade, or sanctioned jurisdictions are commonly designated.
Once listed, U.S. persons are generally prohibited from providing services, financing, or other support related to those vessels or aircraft.
What happens when someone is added to the SDN list?
When a person or entity is added to the SDN List, they become subject to blocking sanctions under U.S. law. This designation triggers immediate legal restrictions on property, financial transactions, and business dealings involving U.S. persons.
Blocking of property
All property and interests in property of the designated party that are within U.S. jurisdiction must be blocked. This includes funds held at financial institutions, accounts, and other assets subject to U.S. control.
Blocked property cannot be transferred, paid, exported, withdrawn, or otherwise dealt in unless authorized by OFAC through license.
Prohibition on transactions
U.S. persons are generally prohibited from engaging in transactions with parties on the SDN List. This includes direct and indirect dealings, such as providing goods, services, financing, or other forms of support.
Even facilitating a transaction involving an SDN through intermediaries can violate U.S. sanctions laws.
Reporting obligations
Financial institutions and other obligated parties must report blocked or rejected transactions involving SDNs to OFAC within required timeframes.
Records related to blocked property and rejected transactions must be maintained in accordance with OFAC reporting and recordkeeping requirements.
How does the OFAC 50 percent rule apply?
The OFAC 50 Percent Rule extends blocking sanctions to entities that are not explicitly listed on the SDN List but are owned 50 percent or more, individually or in the aggregate, by one or more blocked persons.
If designated parties collectively own 50 percent or more of a company, that entity is considered blocked, even if its name does not appear on the SDN List. U.S. persons are therefore prohibited from engaging in transactions with such entities.
As a result, sanctions screening must assess ownership structures and beneficial ownership, not only name matches against the SDN List.
Who must comply with the SDN list?
Compliance with the SDN List is mandatory for parties subject to U.S. jurisdiction and may also affect certain foreign persons under secondary sanctions authorities.
U.S. persons
U.S. persons must comply with SDN-related restrictions. This includes U.S. citizens, permanent residents, entities organized under U.S. law, and any person physically present in the United States. They are prohibited from engaging in transactions with designated parties and must block property when required.
Financial institutions
U.S. banks and other financial institutions are required to screen customers and transactions against the SDN List. If a match is confirmed, they must block the property and report the action to OFAC within the required timeframe.
U.S. companies and foreign branches
U.S. companies, including their foreign branches, must comply with SDN-related sanctions programs. Sanctions obligations generally extend to operations conducted abroad by U.S.-organized entities.
Secondary sanctions exposure
Certain foreign persons and companies may face consequences under secondary sanctions if they engage in significant transactions with SDNs. While not directly subject to U.S. jurisdiction, they can face restrictions on access to the U.S. financial system and other penalties.
How is the SDN list different from other OFAC lists?
The SDN List is the primary blocking sanctions list maintained by OFAC. Other OFAC lists may impose restrictions, but they do not always require full blocking of property or complete transaction prohibitions.
SDN list vs consolidated sanctions list
The SDN List contains individuals and entities subject to blocking sanctions, meaning their property must be blocked and U.S. persons are generally prohibited from dealing with them.
The consolidated sanctions list is a combined reference tool that includes multiple OFAC sanctions lists, both SDN and non-SDN. It helps users search across different sanctions programs but does not itself create new sanctions obligations.
SDN list vs sectoral sanctions identifications (SSI) list
Parties on the SDN List are subject to full blocking sanctions and broad transaction prohibitions.
In contrast, the Sectoral Sanctions Identifications (SSI) List imposes more limited restrictions, such as prohibitions on certain types of financing or debt transactions. Entities on the SSI List are not automatically subject to full blocking unless separately designated.
SDN list vs non-SDN lists
Non-SDN lists include parties subject to specific restrictions that do not require blocked property. These may involve targeted limitations, reporting obligations, or sector-specific prohibitions.
Unlike the SDN List, non-SDN designations typically allow certain transactions to continue, provided they do not violate the specific restrictions imposed under the applicable sanctions program.
How to access and use the SDN list
The SDN List is publicly available through OFAC. It can be accessed online through search tools or downloaded in structured data formats for compliance screening workflows.
OFAC sanctions list search tool
Use our OFAC search tool to screen names, entities, vessels, and wallet identifiers against current SDN and non-SDN coverage. Results still require review because approximate matches do not automatically confirm a true match.
Downloading the SDN list data
The SDN List can also be downloaded directly from OFAC's website in formats including CSV and XML through the sanctions list data files. These files are updated regularly and are used by financial institutions and compliance systems for automated screening.
Organizations that rely on downloaded data must ensure updates are applied promptly to maintain accurate sanctions screening.
How to conduct SDN list screening
SDN List screening is a core component of OFAC screening. Organizations should implement procedures to identify potential matches before onboarding or processing transactions involving U.S. jurisdiction.
Customer screening
Customer screening involves checking individuals and entities against the SDN List before onboarding or establishing a business relationship. This includes verifying names, aliases, and ownership structures.
Enhanced due diligence may be required where there are potential matches or risk indicators linked to sanctioned jurisdictions.
Transaction screening
Transaction screening applies to payments, wire transfers, trade finance activity, and other financial dealings. Institutions should screen transaction parties, including originators, beneficiaries, and intermediaries, to ensure no SDNs are involved.
If a true match is identified, the transaction must be blocked or rejected in accordance with OFAC regulations.
Ongoing monitoring
Sanctions compliance is not a one-time process and should sit inside end-to-end sanctions governance. Organizations should conduct ongoing monitoring to detect newly designated parties and changes to existing SDN records.
Regular updates and rescreening of existing customers help maintain alignment as sanctions programs evolve.
False positives and alert review
Screening systems often generate potential matches that require review. Compliance teams must assess alerts to determine whether they are true matches or false positives.
Proper documentation, escalation procedures, and recordkeeping are essential to demonstrate good-faith compliance efforts.
Enforcement and penalties for SDN violations
Violations involving parties on the SDN List can trigger significant enforcement actions by U.S. authorities. OFAC civil penalties and enforcement information describe how cases are assessed based on the applicable sanctions program, the nature of the conduct, and whether the violation was willful or negligent.
Civil penalties
Civil penalties may be imposed for engaging in prohibited transactions with an SDN, even if the violation was unintentional. Monetary fines can be substantial and are commonly assessed under authorities such as the International Emergency Economic Powers Act.
OFAC also considers aggravating and mitigating factors, including compliance controls and voluntary self-disclosure.
Criminal penalties
Criminal penalties apply to willful violations of U.S. sanctions laws. These may include significant fines and potential imprisonment for responsible individuals.
Criminal enforcement is generally pursued in matters involving deliberate evasion, concealment, or repeated noncompliance.
Reputational and business risk
Beyond legal penalties, dealing with an SDN can result in serious reputational harm and loss of business relationships. Financial institutions may face regulatory scrutiny, restrictions, or increased oversight.
Sanctions violations can also disrupt access to correspondent banking, international markets, and the broader U.S. financial system.
FAQ
How often is the SDN list updated?
The SDN List is updated on an ongoing basis whenever OFAC adds, removes, or modifies designations under its sanctions programs. There is no fixed schedule, and updates can occur at any time. Because changes can be issued without advance notice, organizations should monitor updates regularly and refresh screening systems promptly.
What should I do if I have a match to the SDN list?
If a potential match is identified, review it first to determine whether it is a true match or a false positive. Compare identifying information such as date of birth, address, and other available attributes to confirm identity.
If the match is confirmed, property must be blocked where required, the transaction halted or rejected, and the action reported to OFAC within the applicable timeframe.
How can a person seek removal from the SDN list?
A designated person or entity may request removal by submitting a formal petition to OFAC. The request should include evidence that the basis for designation no longer applies or was made in error. See OFAC guidance on filing a delisting petition.
OFAC reviews delisting requests and may request additional documentation before making a determination. The process can take significant time depending on case complexity.
How is the SDN list different from the Commerce Department's Denied Parties List?
The SDN List is administered by OFAC and primarily imposes blocking sanctions and broad transaction prohibitions under U.S. sanctions laws.
The Commerce Department's Denied Parties List is maintained under export control regulations and restricts exports and certain trade activities. While both lists limit dealings with designated parties, they are governed by different legal authorities and frameworks.