Which statement about the SDN List is accurate?

• A. It lists only individuals
• B. It requires no due diligence
• C. It includes entities that are not country-specific (Correct)
• D. It is optional for banks

Answer: (C)

The main idea is that the SDN List (Specially Designated Nationals and Blocked Persons) from OFAC covers more than just people; it includes both individuals and entities that are subject to sanctions. Importantly, many entries are not tied to a single country. Some entries are organizations or other types of actors with a global presence, meaning sanctions apply regardless of nationality or country of origin. This is why a statement that the list includes entities that are not country-specific is accurate: the list encompasses actors with international reach, not just those linked to one country.

Because of this, screening and due diligence are required for banks and other financial institutions to ensure they do not transact with SDN-listed individuals or blocked entities. Compliance is mandatory, not optional.