Which statement about the Specially Designated Nationals (SDN) List is accurate?

• A. It excludes non-country-specific entities
• B. List of individuals and companies owned, controlled by, or acting on behalf of targeted countries or programs (Correct)
• C. Only lists country-specific entities
• D. U.S. Persons may freely deal with SDN-listed entities

Answer: (B)

The SDN List is a roster used to block assets and restrict transactions with individuals and entities connected to sanctioned regimes or programs. The statement that best describes it is that it includes individuals and companies owned, controlled by, or acting on behalf of targeted countries or programs. This captures both direct control (owned or controlled by) and representation or actions taken on behalf of those targets, which is precisely what triggers sanctions. The list is not limited to country-specific entities, and U.S. Persons may not freely deal with SDN-listed entities unless a specific OFAC license or exemption applies.