How to check a person or company in the OFAC sanctions list?
In the context of the modern global economy, checking counterparties for inclusion in sanctions lists has ceased to be the exclusive prerogative of banks and intelligence agencies. Today, it is a pressing necessity for any business engaged in international activities, working with foreign partners, or simply using US dollars in transactions. The United States Office of Foreign Assets Control (OFAC) maintains the most significant of these lists, and ignoring their content can lead to catastrophic consequences. Understanding how to conduct checks using OFAC databases is a fundamental element of risk management and ensuring the legal security of a company.
What is the OFAC sanctions list?
The OFAC sanctions list, primarily known as the SDN List (Specially Designated Nationals and Blocked Persons List), is not just a collection of names and entities. It is a powerful tool of U.S. foreign policy and national security, designed to isolate individuals and organizations whose activities are deemed threatening. The functions of this list are multifaceted: it blocks access to the American financial system, prohibits any transactions involving “U.S. Persons,” and freezes all assets of sanctioned individuals located within U.S. jurisdiction.
The consequences of being included in the SDN List are total in nature. A company or individual is effectively cut off from global trade denominated in dollars and becomes toxic for any international partner.
Who is included in the SDN sanctions list?
The criteria for inclusion in the SDN List are extremely broad and cover a wide range of threats. The list includes not only international terrorists and drug cartels, as it did at the dawn of its creation. Today, it can include:
- Physical and legal entities associated with the governments of countries under comprehensive embargoes (e.g., Iran, North Korea).
- Companies and entrepreneurs operating in key sectors of the economies of countries against which sectoral sanctions have been imposed.
- Organizations and individuals accused of spreading weapons of mass destruction, cyberattacks, human rights violations, or undermining democratic processes.
- Companies that are owned or controlled (directly or indirectly by 50% or more) by individuals already listed on the SDN list. This is the so-called “50% Rule.“
- Intermediaries who help bypass already imposed sanctions.
This list is constantly updated, reflecting the current priorities of U.S. foreign policy.
Where and how can one perform a check — official website
The most reliable and absolutely free way to check a counterparty is to use the official search tool on the website of the U.S. Department of the Treasury. This tool is called Sanctions List Search. It can be found at sanctionssearch.ofac.treas.gov. This resource is the primary source and guarantees the most up-to-date information.
The interface of the search form is quite simple. The user is prompted to enter known data about the person or company being checked. It is important to pay attention not only to the exact match of the name but also to other identifiers provided by the system. The official website is the best way to get a definitive answer about the status of a person directly from the regulator.
What data is needed for verification?
The more data you have for verification, the more accurate the result will be. For an effective search, it is recommended to use the following information:
- For an individual: full name, including all known aliases, date and place of birth, citizenship, passport number.
- For a legal entity: full official name, registration number, legal address, country of registration.
An example of working with results: suppose you are checking a counterparty named “Alexander Ivanov.” A search for this name will yield dozens, if not hundreds, of matches. These are “false positives.” To distinguish “your” Ivanov from “someone else’s,” you need to compare additional data. If your counterparty was born in 1985 in Ryazan, and the SDN list includes a full namesake born in 1970 from Moscow, you can confidently conclude that this is not the same person. However, if the data partially matches, this is a serious reason for further in-depth verification.
What to do if a person is found on the list?
Detection of an exact match between your partner’s data and a record on the SDN list is a signal to immediately halt all operations. The consequences of continuing interaction will be swift and severe. Any attempts to conduct a transaction will be blocked by banks, and assets associated with the deal may be frozen immediately. A company that ignores the results of the screening risks falling under secondary sanctions for aiding in circumventing restrictions.
Actions in such a situation must be unambiguous. It is necessary to immediately cease all contacts and transactions with this person or company. If, for any reason, you find your name or your company’s name on the list, urgently contact a lawyer specializing in OFAC sanctions law. Only a professional can assess the situation and develop a strategy to protect your interests.
Sanctions list screening is a mandatory part of comprehensive legal due diligence of counterparties. This procedure is used on an ongoing basis across various industries to minimize risks. Banks and financial institutions conduct OFAC due diligence when opening accounts and monitoring transactions as part of KYC (Know Your Customer) procedures. Law firms are required to screen their clients to avoid involvement in servicing sanctioned transactions. Real estate agencies, especially those dealing with luxury properties, check buyers and sellers to prevent operations with blocked assets. The integration of sanctions screening into corporate procedures is a sign of responsible business conduct.
Alternative tools: World-Check, Dow Jones, Castellum.ai
Even if a person or company is not found on the OFAC list, this does not always mean a complete absence of risks. There are hundreds of other sanction and restrictive lists worldwide (EU, United Kingdom, UN, etc.), as well as lists of politically exposed persons (PEP) and databases with negative mentions in the media.
For comprehensive verification, there are commercial databases that aggregate information from multiple sources. The most well-known of them are:
- World-Check (from LSEG)
- Dow Jones Risk & Compliance
- Castellum.ai
These platforms allow for a single check across all significant global lists, providing a more complete picture of the risks associated with a potential partner. They are the standard for large companies and financial institutions, for whom maximum depth of verification is important.
Order a consultation with an OFAC lawyer
Navigation through the maze of sanctions legislation requires specialized knowledge. Misinterpreting search results, dealing with false positives, or, even worse, detecting an actual match are situations where a mistake could cost a company its future. A professional OFAC sanctions attorney can not only conduct the review correctly but also build an internal compliance system that will protect your business from unintentional violations. If you are facing difficulties during a review or want to be confident in your counterparties, schedule a consultation with a specialist. This is an investment in the stability and security of your business.
FAQ
How to check if someone is on the OFAC list?
The most reliable and official way to check an individual or legal entity for inclusion in sanctions lists is to use the free search tool on the OFAC website: Sanctions List Search. Verification procedure: Go to the official website sanctionssearch.ofac.treas.gov. In the “Name” field, enter the name of an individual or the name of a company. Click the “Search” button. The system will display a list of all matches. It is important not to jump to conclusions upon finding a similar name. Carefully compare all available data: date of birth, citizenship, known aliases. If all key identifiers match, the likelihood that this is the sought sanctioned individual is very high.
What does OFAC sanction mean?
An OFAC sanction is a restrictive economic measure that the U.S. government applies to achieve national security and foreign policy objectives. For an individual or company, being included in the sanctions list, primarily in the SDN List, means actual isolation from the U.S. financial system.
Which countries are sanctioned by OFAC?
OFAC applies various sanction programs of differing severity. It is important to distinguish between comprehensive sanctions, which impose an almost complete economic embargo, and sectoral or targeted sanctions aimed at specific individuals, companies, or sectors of the economy.
As of 2025, the countries with the strictest and most comprehensive sanction regimes imposed by the United States include: Cuba, Iran, North Korea (DPRK), Syria, and regions of Ukraine: Crimea, the so-called “Donetsk People’s Republic” (DPR) and “Luhansk People’s Republic” (LPR). In addition, there are numerous countries subject to targeted or sectoral sanctions. This means that the restrictions do not apply to the entire country but to specific sectors of the economy (e.g., financial, energy, defense) or certain individuals and organizations included in the SDN list. Such countries include, in particular, Russia, Venezuela, Belarus, Myanmar (Burma), China, and others. The list is constantly updated depending on the geopolitical situation; therefore, before conducting any transaction, it is necessary to check the current information on the official OFAC website.
How do i get off OFAC sanctions list?
Exclusion from the OFAC sanctions list, specifically from the SDN List, is initiated by submitting an administrative petition (request for reconsideration) directly to OFAC. The applicant must provide compelling evidence and arguments as to why their inclusion on the list is no longer justified. Grounds for exclusion may include a change in circumstances that led to the imposition of sanctions (e.g., cessation of prohibited activities), proof of mistaken identity (if a “double” was added to the list), or successful challenge of the factual basis for inclusion in the list. The process begins by sending a written request to the email address [email protected]. The petition must detail the applicant’s position and include all supporting documents. OFAC will review the submitted materials, may request additional information, and conduct its own investigation. The review period varies and can take from several months to several years depending on the complexity of the case. While hiring a lawyer is not a mandatory requirement, it is strongly recommended to involve qualified attorneys specializing in sanctions law, as they can help structure arguments effectively and increase the chances of success.
