Under OFAC's 50 percent rule, entities owned 50 percent or more by one or more blocked persons are also blocked, even if they are not on the list. The SDN list is updated often, so screening must use current data.
Example
A US bank receives a wire in which an SDN has an interest: it must block the funds and report to OFAC.
Where it appears in the exams
This topic is relevant for CGSS, CAMS.
Read more
The OFAC 50 percent rule explained, with examples
Related terms
- Sanctions screening: Sanctions screening is checking customers, owners, counterparties and payments against sanctions lists to make sure the firm does not deal with listed persons or prohibited activity.
Source: OFAC: Specially Designated Nationals and Blocked Persons List; OFAC guidance on entities owned by blocked persons (2014). Independent explanation for study purposes, not legal advice.