Criminal Defense Lawyers

The OFAC SDN List Explained

The Specially Designated Nationals (SDN) list published by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) is one of the most powerful tools for enforcing economic sanctions. But what exactly is the SDN list, and how does it work?

What is the SDN List?

The SDN list is a directory of individuals and companies specifically targeted by OFAC sanctions programs. SDNs can include:

• Government officials and ruling elites in sanctioned regimes.
• Terrorists, drug traffickers, and other major criminals.
• Weapons proliferators and sanctions evaders.
• Entities engaged in malicious cyber activities.

As of September 2022, there were over 1,000 SDN entries, spanning thousands of individuals and organizations located around the world.

Two Types of SDN Entries

The SDN list contains two main types of entries:

1. Specially Designated Nationals (SDNs) – Individuals and companies specifically designated under sanctions programs.
2. Blocked Persons – Entries for vessels, aircraft, and other property interests that are blocked rather than designated.

Both SDNs and Blocked Persons are subject to asset blocking and transaction prohibitions.

Goals of the SDN List

Adding parties to the SDN list is intended to:

• Freeze assets and block transactions for specific bad actors.
• Publicly identify and shame those engaged in illicit conduct.
• Warn the global financial community about prohibited dealings.
• Deter sanctions evasion and related crimes.

The SDN list operationalizes targeted sanctions imposed through U.S. laws and executive orders.

Christine Twomey

2024-03-21

Just had my Divorce case settled 2 months ago after having a horrible experience with another firm. I couldn’t be happier with Claire Banks and Elizabeth Garvey with their outstanding professionalism in doing so with Spodek Law Group. Any time I needed questions answered they were always prompt in doing so with all my uncertainties after 30 yrs of marriage.I feel from the bottom of my heart you will NOT be disappointed with either one. Thanks a million.

Brendan huisman

2024-03-18

Alex Zhik contacted me almost immediately when I reached out to Spodek for a consultation and was able to effectively communicate the path forward/consequences of my legal issue. I immediately agreed to hire Alex for his services and did not regret my choice. He was able to cover my case in court (with 1 day notice) and not only was he able to push my case down, he carefully negotiated a dismissal of the charge altogether. I highly recommend Spodek, and more specifically, Alex Zhik for all of your legal issues. Thanks guys!

Guerline Menard

2024-03-18

Thanks again Spodek law firm, particularly Esq Claire Banks who stood right there with us up to the finish line. Attached photos taken right outside of the court building and the smile on our faces represented victory, a breath of fresh air and satisfaction. We are very happy that this is over and we can move on with our lives. Thanks Spodek law 🙏🏼🙏🏼🙏🏼🙏🏼🙌🏼❤️

Keisha Parris

2024-03-15

Believe every single review here about Alex Z!! From our initial consultation, it was evident that Alex possessed a profound understanding of criminal law and a fierce dedication to his clients rights. Throughout the entirety of my case, Alex exhibited unparalleled professionalism and unwavering commitment. What sets Alex apart is not only his legal expertise but also his genuine compassion for his clients. He took the time to thoroughly explain my case, alleviating any concerns I had along the way. His exact words were “I’m not worried about it”. His unwavering support and guidance were invaluable throughout the entire process. I am immensely grateful for Alex's exceptional legal representation and wholeheartedly recommend his services to anyone in need of a skilled criminal defense attorney. Alex Z is not just a lawyer; he is a beacon of hope for those navigating the complexities of the legal system. If you find yourself in need of a dedicated and competent legal advocate, look no further than Alex Z.

Taïko Beauty

2024-03-15

I don’t know where to start, I can write a novel about this firm, but one thing I will say is that having my best interest was their main priority since the beginning of my case which was back in Winter 2019. Miss Claire Banks, one of the best Attorneys in the firm represented me very well and was very professional, respectful, and truthful. Not once did she leave me in the dark, in fact she presented all options and routes that could possibly be considered for my case and she reinsured me that no matter what I decided to do, her and the team will have my back and that’s exactly what happened. Not only will I be liberated from this case, also, I will enjoy my freedom and continue to be a mother to my first born son and will have no restrictions with accomplishing my goals in life. Now that’s what I call victory!! I thank the Lord, My mother, Claire, and the Spodek team for standing by me and fighting with me. Words can’t describe how grateful I am to have the opportunity to work with this team. I’m very satisfied, very pleased with their performance, their hard work, and their diligence. Thank you team!

Anthony Williams

2024-03-12

Hey, how you guys doing? Good afternoon my name is Anthony Williams I just want to give a great shout out to the team of. Spodek law group. It is such a honor to use them and to use their assistance through this whole case from start to finish. They did everything that they said they was gonna do and if it ever comes down to it, if I ever have to use them again, hands-down they will be the first law office at the top of my list, thank you guys so much. It was a pleasure having you guys by my side so if you guys ever need them, do not hesitate to pick up the phone and give them a call.

Loveth Okpedo

2024-03-12

Very professional, very transparent, over all a great experience

Bee L

2024-02-28

Amazing experience with Spodek! Very professional lawyers who take your case seriously. They treated me with respect, were always available, and answered any and all questions. They were able to help me very successfully and removed a huge stress. Highly recommend.

divesh patel

2024-02-24

I can't recommend Alex Zhik and Spodek Law Firm highly enough for their exceptional legal representation and personal mentorship. From the moment I engaged their services in October 2022, Alex took the time to understand my case thoroughly and provided guidance every step of the way. Alex's dedication to my case went above and beyond my expectations. His expertise, attention to detail, and commitment to achieving the best possible outcome were evident throughout the entire process. He took the time to mentor me, ensuring I understood the legal complexities involved to make informed decisions. Alex is the kind of guy you would want to have a beer with and has made a meaningful impact on me. I also want to acknowledge Todd Spodek, the leader of the firm, who played a crucial role in my case. His leadership and support bolstered the efforts of Alex, and his involvement highlighted the firm's commitment to excellence. Thanks to Alex Zhik and Todd Spodek, I achieved the outcome I desired, and I am incredibly grateful for their professionalism, expertise, and genuine care. If you're in need of legal representation, look no further than this outstanding team.

Load more

Google rating score: 4.9 of 5, based on 736 reviews

Consequences of SDN Listing

Being named to the SDN list has severe consequences:

• Asset blocking – All property and interests in property belonging to SDNs in the U.S. or in the possession of U.S. persons are frozen.
• Transaction prohibitions – U.S. persons are broadly prohibited from dealing with SDNs.
• Reputational damage – Being publicly listed carries stigma and risks for SDNs.
• De-risking – Many foreign banks and firms will not do business with listed parties to avoid sanctions risks.

In effect, SDN listing cuts off designated entities from the U.S. financial system and makes them radioactive globally.

Secondary Sanctions

For certain programs like Iran and Russia, foreign persons engaging in significant transactions with listed SDNs also face potential U.S. secondary sanctions, including being added to the SDN list themselves.

How Entities Get Added to the SDN List

OFAC uses multiple legal authorities to designate parties as SDNs and add them to the list, including:

• Country-specific sanctions programs on nations like Iran, Syria, North Korea, etc.
• Global terrorism, narcotics trafficking, and human rights authorities.
• Weapons of mass destruction (WMD) and cyber-related authorities.
• Transnational criminal organization authorities.

Suggestions for potential SDN listings can come from U.S. agencies, law enforcement, financial institutions, and other sources.

Evidentiary Standards

OFAC must have evidence that meets the applicable legal standard to designate an entity as an SDN. This includes:

• Engaging in sanctionable conduct under program authorities.
• Acting on behalf of blocked persons.
• Being owned or controlled by blocked persons.

OFAC also provides designated parties with unclassified summaries explaining the basis for their listings.

Searching the SDN List

OFAC makes the SDN list available in multiple formats, including:

• Downloadable Excel, CSV, and XML files for screening.
• PDF and TXT lists for browsing.
• An online search tool for lookups.

The SDN list is updated frequently, often with little notice. Users need to refresh their copies regularly to have the latest version.

Sanctions Screening

Financial institutions and companies commonly screen their customer databases and transactions against the full SDN list using specialized sanctions filtering software. This helps catch any prohibited dealings with listed entities.

SDN Lookup Tool

OFAC’s website offers an online search tool for convenient SDN list lookups. Users can search by name, country, sanctions program, and other filters.

Checking names against the online SDN search is an important public compliance step before dealing with potential matches.

Getting Off the SDN List

SDN designations are not necessarily permanent. Delisting can occur if:

• The listing basis is found invalid or expires.
• A petition for delisting is approved by OFAC.
• There is a demonstrated change in behavior by the SDN.
• The SDN dies or no longer exists.

Petition for Delisting

SDNs can submit a petition to OFAC requesting administrative reconsideration of their designation. The petition should explain in detail why the listing is inappropriate or should no longer apply.

OFAC carefully reviews reconsideration requests on a case-by-case basis. Per the OFAC guidelines, common reasons for delisting include:

• The basis for designation no longer applies or was invalid.
• A change in behavior, cooperation, or policies by the SDN.
• New evidence exonerates the SDN.
• Mistaken identity or false positives.

If the petition is approved, OFAC issues a public notice removing the party from the SDN list.

License for Access to Funds

In certain cases, OFAC may allow a delisted party to apply for a specific license to access their previously frozen funds for living expenses, legal fees, or other approved uses.

Conclusion

The SDN list is one of the most effective tools for enforcing U.S. sanctions. Being designated as an SDN carries severe consequences. While delisting does occur, it requires meeting a high legal bar through the OFAC reconsideration process. Due to the complexity, obtaining specialized legal counsel is advisable for pursuing removal from the SDN list.