The Specially Designated Nationals and Blocked Persons List (SDN List) is a compilation maintained by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). It includes individuals, entities, and organizations with whom U.S. persons are generally prohibited from doing business with. The primary purpose of the SDN List is to combat threats to national security and foreign policy objectives by isolating and financially constraining the listed parties. The designations prevent these individuals and entities from accessing the U.S. financial system and conducting business with U.S. persons.
The Department of Commerce’s Bureau of Industry and Security (BIS) is responsible for regulating the export of commodities and related technology that could compromise U.S. national security if widely released. BIS maintains a list of “Denied Persons,” which includes foreign governments, individuals, and corporations deemed unsafe. National security responsibilities are shared among various federal agencies. OFAC, in addition to the SDN List, enforces regulations under 31 CFR § 515.306, which target individuals and organizations representing restricted countries or involved in terrorism and narcotics trafficking. It is prohibited to engage in export transactions with entities on the SDN List.
See also: Federal Register: Denied Persons & Specially Designated Nationals.
[Last updated in June of 2024 by the Wex Definitions Team]