Removing Your Name from the SDN List.
Being designated on the Specially Designated Nationals (SDN) list means losing access to the U.S.-led global financial system, which can severely impact your business and personal finances. Our team guides clients through the SDN removal process with expertise, providing support at every stage of the petition. We develop compelling arguments and assemble essential documentation to build a strong case. Trust us to advocate on your behalf, striving for a swift and favorable resolution to restore your financial standing and reputation.
What is the SDN List?
The Specially Designated Nationals (SDN) List is maintained by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) and includes individuals, entities, and vessels subject to U.S. economic and trade sanctions. The list targets specific persons by blocking their property and interests in property, effectively freezing assets and denying access to a broad range of financial and business services. Being listed restricts business and trade not only with the U.S. but also in many other countries and industries that comply with U.S. sanctions policies.
Why Might Someone Be Added to the SDN List?
OFAC designates individuals and entities that are allegedly “owned or controlled by, or acting for or on behalf of, targeted countries” as well as those allegedly involved in activities such as terrorism, narcotics trafficking, human rights abuses, and cybercrime. These designations often implement secondary sanctions aimed at influencing the behavior of non-U.S. persons. Although only U.S. persons are required to comply with OFAC regulations, foreign businesses and financial institutions often choose to comply to avoid sanctions risks. Engaging in “sanctionable activity” — facilitating sanctions evasion or causing U.S. persons to violate sanctions, for example — can lead to designation under various Executive Orders and are meant to encourage global compliance with U.S. sanctions regulations.
What Happens When Someone is Placed on the SDN List?
U.S. banks and businesses are legally obligated to comply with OFAC sanctions. This includes freezing the assets of designated persons, blocking transactions, and preventing access to funds. Designated individuals and entities often face severe consequences, such as losing access to business partners, funds, and essential services. This impact extends internationally, as foreign financial institutions may also refuse to provide services to avoid secondary sanctions risks.
Why Do Non-U.S. Businesses and Banks Refuse to Transact with Designated Persons?
Although only U.S. persons are required to comply with OFAC sanctions, many non-U.S. entities voluntarily align with these standards to avoid secondary sanctions and reputational risks. For instance, foreign entities that provide material support to SDNs risk becoming designated themselves. Moreover, many international brands are sensitive to public perception and avoid associations with sanctioned individuals or entities to protect their reputation.
What if Someone is Mistakenly Added to the SDN List?
OFAC designations are sometimes based on outdated or incorrect information. Individuals or businesses that believe they have been mistakenly designated can challenge the listing. Our team at Sanctions Law Center assists clients in preparing thorough petitions for SDN removal, backed by evidence and a deep understanding of U.S. sanctions law.
How to Get Removed from the SDN List?
The delisting process, governed by 31 CFR 501.807, allows designated persons to petition for removal from the SDN List based on an insufficient basis for designation or a change in circumstances. This petition requires a detailed analysis, compelling justification, and expertise in sanctions law to maximize the chances of success. OFAC may request additional information and, in some cases, arrange a meeting with an OFAC officer, though this is not guaranteed. Our firm provides comprehensive support for filing a Petition for Removal, presenting all necessary information about you or your business to OFAC.
What if My Counterparty is Designated by OFAC?
OFAC designations take effect immediately upon publication, which means you may learn of a counterparty’s designation in the middle of a transaction. This situation carries risks, including blocked transactions and potential exposure to secondary sanctions. In such cases, a well-defined compliance program and risk mitigation strategy are essential. Our firm also offers compliance counseling to help businesses navigate these complexities. If you’re a U.S. person and subject to U.S. sanctions enforcement, it may be advisable to consider Voluntary Self-Disclosure. Learn more about how Sanctions Law Center assists with VSD applications here.
If you believe that your designation by OFAC is a mistake, is no longer warranted, or that the circumstances surrounding your designation have changed, contact Sanctions Law Center to discuss how we can assist in seeking your removal from the SDN List.