SDN: Specially Designated Nationals List

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:

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