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If you have spent any time around trade compliance, you have heard of the OFAC SDN list — usually mentioned in the same breath as fines, blocked payments, and frozen shipments. It is the single most important sanctions list for businesses worldwide, and misunderstanding it is a fast route to trouble. This guide explains, in plain English, what the SDN list is, who is on it, why it reaches far beyond the United States, and how to check a name against it for free.
The SDN list is one of the core lists checked during denied party screening, so understanding it makes your screening sharper and your risk decisions better informed.
What Is the OFAC SDN List?
SDN stands for Specially Designated Nationals and Blocked Persons. The list is published and maintained by the Office of Foreign Assets Control (OFAC), part of the U.S. Department of the Treasury. It names individuals, companies, and other entities that the United States has sanctioned — either because they are connected to a sanctioned country or regime, or because of their involvement in activities such as terrorism, narcotics trafficking, weapons proliferation, or other national-security threats.
The word “blocked” is key. U.S. persons are generally prohibited from dealing with anyone on the SDN list, and any assets or property those parties hold within U.S. jurisdiction — or in the control of a U.S. person — must be frozen. In effect, an SDN is walled off from the U.S. financial and commercial system.
Who Ends Up on the SDN List?
The SDN list is broad and covers more than just people. Entries include:
- Individuals — from sanctioned officials to designated traffickers and financiers.
- Companies and organizations — businesses owned by or acting on behalf of sanctioned targets.
- Vessels — specific ships, identified by name and IMO number.
- Aircraft — identified by tail number and other details.
Each entry typically includes identifying details — aliases, addresses, dates of birth, passport or registration numbers — precisely so screeners can tell a true match from a common-name coincidence.
Why the SDN List Reaches Beyond the United States
Businesses outside the U.S. often assume the SDN list is not their problem. That is a dangerous mistake. U.S. sanctions can apply to any transaction with a meaningful U.S. connection, including:
- Payments made in U.S. dollars, which typically clear through the U.S. financial system.
- Goods, software, or technology of U.S. origin.
- Transactions involving U.S. persons or companies anywhere in the chain.
Because U.S. dollars and U.S.-origin content are everywhere in global trade, a business in Singapore, London, or Dubai can be exposed to U.S. sanctions liability just as readily as an American one. That is why the SDN list is a global compliance standard, not a domestic one.
The 50 Percent Rule: Hidden SDNs
One of the SDN list’s biggest traps is that a party can be effectively sanctioned without appearing on the list at all. Under OFAC’s “50 percent rule,” any entity that is owned 50% or more — directly or indirectly, individually or in aggregate — by one or more SDNs is treated as an SDN itself, even though its name is not listed. A plain name search will not catch these hidden parties, so understanding ownership is essential for higher-risk counterparties.
How the SDN List Fits With Other Lists
The SDN list is a sanctions list, focused on who you can transact and move money with. It is not the only list you should check, and it is easy to confuse it with export-control lists that serve a different purpose.
| List | Focus | Maintained by |
|---|---|---|
| SDN List | Sanctions — who you can transact with | Treasury (OFAC) |
| Entity List / Denied Persons List | Export controls — who can receive goods/technology | Commerce (BIS) |
| Debarred List | Defense-trade (ITAR) debarment | State Department |
Thorough screening checks all of them. For more on how sanctions and export controls differ, see our guide to the difference between export controls and sanctions, and our overview of what export controls are.
How to Check a Name Against the SDN List for Free
You do not need paid software to check the SDN list. The list is public, and free tools let you search it. The simplest option is to screen names against the U.S. Consolidated Screening List — which includes the SDN list alongside the main Commerce and State lists — using Globalior’s free denied party screening tool. To check a name effectively:
- Enter the party’s full name, using fuzzy matching to catch alias and spelling variants.
- Compare any hit against the entry’s identifiers — address, country, date of birth, or registration number — to confirm or dismiss it.
- For higher-risk parties, consider ownership and the 50 percent rule, not just the name.
- Record the result, including clean checks, as part of your compliance audit trail.
What to Do If You Get an SDN Match
If you confirm a genuine match, stop immediately. Do not ship the goods or release any payment, and do not take steps that could tip off the party. Depending on your jurisdiction and role, you may have obligations to block property or report the match. Because the consequences of an SDN violation are severe — substantial fines and potential criminal liability — this is the moment to seek qualified compliance or legal advice. Handling matches correctly is a core part of your wider trade compliance responsibilities.
Frequently Asked Questions
What does SDN stand for?
SDN stands for Specially Designated Nationals and Blocked Persons. It is the list of sanctioned individuals, entities, vessels, and aircraft maintained by the U.S. Treasury’s Office of Foreign Assets Control (OFAC).
Does the SDN list apply to non-U.S. companies?
It can. U.S. sanctions reach transactions involving U.S. dollars, U.S.-origin goods or technology, or U.S. persons — connections that are common in international trade. That gives the SDN list effectively global reach, so businesses everywhere screen against it.
Is checking the SDN list free?
Yes. The SDN list is public, and you can search it for free — including through a consolidated tool that also covers the main Commerce and State lists. Paid software adds automation, monitoring, and ownership analysis, but the underlying data is free to check.
What is the difference between the SDN list and the consolidated screening list?
The SDN list is one specific OFAC sanctions list. The Consolidated Screening List is a broader collection that aggregates the SDN list together with export-control and other lists from Commerce and State, so you can check many lists in one search.
Key Takeaways
The OFAC SDN list names the individuals, entities, vessels, and aircraft the United States has sanctioned, and dealing with them is broadly prohibited — with global reach through U.S. dollars, U.S.-origin goods, and U.S. persons. Watch for hidden SDNs under the 50 percent ownership rule, check it alongside the Commerce and State export-control lists, and record every check. You can screen a name against the SDN list right now, for free, using our denied party screening tool.
Unsure whether a hit is a true SDN match? Contact the Globalior team for free trade-compliance guidance.
