The Importance of Blocked Persons and Specially Designated Nationals List In order to use the Blocked Persons and Specially Designated Nationals List, it’s important to understand how it works, and how you should use it when engaging with foreign business interests. What You Need to Know About Blocked Persons & SDN Lists Alternatively, they may be owned by, or acting on behalf of, organizations and even state-sponsors which engage in those activities. An SDN may be involved in criminal activities such as terrorism, narcotics trafficking, or weapons proliferation. What is an SDN List?Ī Specially Designated Nationals and Blocked Persons, or an ‘SDN’, is an individual, entity, or organization deemed detrimental to the security of the United States. Businesses should conduct checks prior to establishing a relationship with the person or entity, or conducting transactions with them, and periodically throughout the relationship. 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. The Blocked Persons and Specially Designated Nationals List is updated regularly with the names of individuals, entities, and organizations deemed to be involved in a range of criminal activities. 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 OFAC SDN list represents an essential tool in the fight against money laundering and terrorist financing in the United States and around the world. When entering into discussions with a proposed collaborator, it is critical to check the SDN list for the name of the person or entity with which you are dealing.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. OFAC designates persons and entities as SDNs for narcotics trafficking, weapons proliferation and other reasons. OFAC can also designate persons and entities (including persons and entities in the United States) as Specially Designated Nationals (" SDN list"). The list of sanctioned countries is updated periodically and is available here. Some sanctions are more restrictive than others, and apply to the whole country, while others are specifically target certain individuals or entities within a country. These sanctions may require obtaining OFAC approval before conducting research or other activities in or involving the sanctioned country. Depending on the country, OFAC programs may freeze assets of embargoed countries, prohibit payment of funds to individuals and countries on the embargo list, or prohibit provision of services to countries subject to US sanctions. The Treasury Department's Office of Foreign Assets Control (OFAC) administers and enforces economic sanctions imposed by the United States against foreign countries.
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