Non-SDN List and NS-MBS: What Menu-Based Sanctions Mean in 2026

The non-SDN list is not a single list but a group of OFAC sanctions lists whose entries face restrictions other than the standard full asset freeze of the SDN List. The best known are the Non-SDN Menu-Based Sanctions (NS-MBS) List, the Sectoral Sanctions Identifications (SSI) List and the Non-SDN Chinese Military-Industrial Complex Companies (NS-CMIC) List. The prohibitions differ from entry to entry, so a match on a non-SDN list should always be read against the entry itself before anyone decides whether to block, reject or proceed.

The NS-MBS List is OFAC’s reference list for foreign persons subject to “menu-based” sanctions: a tailored set of prohibitions chosen from a statutory menu, generally narrower than the full asset freeze that follows an SDN designation. OFAC introduced the list on 14 December 2020. Since 17 July 2026 it has also carried the Hong Kong entries described below, and some of those entries state that property is blocked, so the list can no longer be treated as “non-blocking” by definition.

What Changed in July 2026: Hong Kong Entries Move to the NS-MBS List

Executive Order 13936, issued in July 2020, was the basis of the sanctions program on Hong Kong, and the national emergency it declared expired in July 2026. On 17 July 2026 OFAC responded with three changes:

• it removed from the SDN List persons designated under E.O. 13936 whose property had been blocked solely under the International Emergency Economic Powers Act (IEEPA);
• it moved persons who remain sanctioned under the Hong Kong Autonomy Act of 2020 (HKAA) from the SDN List to the NS-MBS List;
• it confirmed that property blocked before 14 July 2026 remains blocked.

OFAC also stated that the HKAA and the Hong Kong Human Rights and Democracy Act of 2019 remain in force, that it intends to amend the Hong Kong-Related Sanctions Regulations (31 C.F.R. part 585), and that it is reviewing the related FAQs and guidance. Before relying on the text of part 585, check OFAC’s Hong Kong-related sanctions page to see whether the amendment has been published.

What this means in practice. The entries transferred under the HKAA state the prohibition themselves: the person’s property and interests in property are blocked, and all transactions with the person are prohibited except the importation of goods (Federal Register notice of 22 July 2026). An NS-MBS match is therefore not automatically a “non-blocking” match. Compliance teams should:

1. confirm that screening covers the NS-MBS List (list code [MBS]) and not only the SDN List, because a person removed from the SDN List may now sit on NS-MBS;
2. read each entry, and do not assume that “non-SDN” means “safe to proceed”;
3. treat removal from the SDN List as a change of list, not necessarily an end of sanctions.

Hong Kong Companies in Iran-Related Actions Are a Separate Track

The July restructuring should not be confused with OFAC’s Iran-related actions against Hong Kong companies. On 28 April 2026 OFAC sanctioned 35 persons, including eight Hong Kong firms, for helping Iranian banks move money through a shadow banking network, according to Caixin. Later Iran-related actions, including OFAC’s 28 August 2026 update, also listed Hong Kong trading companies. Those are SDN designations under Iran-related authorities, with full blocking, and they are not affected by the end of the E.O. 13936 emergency.

What Makes Menu-Based Sanctions Different from an SDN Listing?

The primary distinction is the type of restriction imposed. An SDN listing is OFAC’s most restrictive tool. It triggers “full blocking sanctions”—a near-total asset freeze where all property and interests in property of the listed person under U.S. jurisdiction are blocked, and U.S. persons are prohibited from almost all dealings with them.

By contrast, most NS-MBS entries carry non-blocking, menu-based sanctions: only the specific prohibitions selected from a statutory “menu” and spelled out in the entry apply, and other transactions may remain permissible. There is one important exception since July 2026: the Hong Kong Autonomy Act entries that moved from the SDN List state that the person’s property is blocked. Either way, the entry, not the list name, tells you what is prohibited. Comprehensive due diligence is critical, since the specific menu applied can vary significantly from one designee to another.

What is the difference between SDN and non-SDN Lists?

The difference boils down to the severity and scope of the prohibitions. Understanding this is vital for proper risk assessment.

• SDN List (Specially Designated Nationals and Blocked Persons): This is OFAC’s flagship list. A designation leads to a comprehensive asset freeze. Period. All property in U.S. jurisdiction is blocked, and U.S. persons are generally forbidden from any transactions with the party. The consequences are severe and immediate.

• Non-SDN Lists (like NS-MBS, SSI, NS-CMIC): These lists apply targeted, specific prohibitions. The restrictions only apply to certain activities, like providing specific types of financing or services. For instance, some entities face restrictions on new debt but not on other forms of trade. The prohibitions are detailed in the specific list entry rather than applied as a blanket ban — but that also means reading the entry carefully matters: assuming “non-SDN” automatically means “safe to proceed” is itself a common compliance mistake.

What does “Non-SDN List” mean?

“Non-SDN List” is a general term for any OFAC sanctions list that does not impose the standard full blocking of the SDN List. Instead, these lists apply more specific restrictions, set out in each entry. When a screening check returns a match on a non-SDN list, your first step is not to block the transaction. It is to read the prohibitions attached to that entry, because assuming a total ban is a costly mistake, and so is assuming that nothing applies.

What Legal Authority Allows for Menu-Based Sanctions?

Menu-based sanctions aren’t arbitrary. They are enabled by specific statutes from the U.S. Congress and implemented through Executive Orders signed by the President. OFAC cites several primary legal authorities for the NS-MBS List.

The main drivers include:

• Countering America’s Adversaries Through Sanctions Act (CAATSA): Section 235 sets out the “menu” of twelve possible sanctions. Where the statute requires sanctions, for example under Section 231 for significant transactions with Russia’s defense or intelligence sectors, at least five of the twelve must be imposed. The December 2020 CAATSA sanctions on Turkey’s defense procurement agency are a well-known example.
• Ukraine Freedom Support Act of 2014: As amended by CAATSA, this act also authorises menu-based sanctions, particularly concerning Russia’s activities in the energy sector.
• Hong Kong Autonomy Act of 2020 (HKAA): remains in force after the E.O. 13936 emergency ended. It requires reporting on foreign persons who materially contribute to undermining Hong Kong’s autonomy and authorizes sanctions on them and on foreign financial institutions that knowingly conduct significant transactions with them.
• Executive Order (E.O.) 13849: This order provides a key mechanism for implementing the sanctions described in CAATSA, delegating authority to the U.S. Department of the Treasury and directing its action.

How Are Entities Added to the NS-MBS List?

An entity gets added to the NS-MBS list only after a formal U.S. government determination that it engaged in conduct specified in a sanctions statute.

The process generally follows these steps:

1. Determination: A U.S. government agency, typically the Department of State or Treasury, concludes that a foreign entity has met the criteria for sanctions under a law like CAATSA. A potential pitfall here is that this determination is based on intelligence that is often not public, making it difficult for the target to pre-emptively challenge the underlying evidence.
2. Sanction Selection: The implementing agency then selects the required number of sanctions from the statute’s “menu.” Under CAATSA Section 235, at least five of twelve possible sanctions must be chosen. These can range from a ban on U.S. Export-Import Bank assistance to prohibitions on U.S. government procurement contracts.
3. Publication: OFAC officially designates the person or entity, publishing their name and the specific, applicable sanctions in the Federal Register.
4. Listing: The entity is then added to the NS-MBS List. This data is also integrated into OFAC’s Consolidated Sanctions List and becomes searchable via the “Sanctions List Search” tool.

Entries can also move between lists. In July 2026, OFAC transferred persons who remain sanctioned under the HKAA from the SDN List to the NS-MBS List, while property blocked earlier stayed blocked.

While a person can petition for removal from the list, this is a complex administrative and legal process — similar in structure to petitioning for removal from the SDN List, though governed by its own statutory criteria under CAATSA. Given how fact-dependent these petitions are, this is generally where getting professional guidance early matters most.

How Can I Check the NS-MBS List and What Do I Look For?

U.S. persons should check the NS-MBS List using OFAC’s free online tools. Our guide on how to check a person or company against the OFAC sanctions list covers this process in detail. In short, there are two main routes:

• Sanctions List Search: This is the most user-friendly tool for checking a specific name against all of OFAC’s sanctions lists, including the NS-MBS List.
• Consolidated Sanctions List Data: For businesses that need to conduct a high volume of checks, OFAC provides downloadable data files for automated screening. The NS-MBS list data is included in these files and is identified by the official list code [MBS]. A common error here is failing to update these files frequently, as a stale list is a major compliance risk.

When you get a positive match on the NS-MBS List, the entry will specify the exact prohibitions. These are not standard blurbs — they are pulled directly from the statutory menu and might include bans on loans, foreign exchange dealings, or property transactions. It is vital to read the restrictions on a record-by-record basis to understand your compliance obligations fully.

How Does the NS-MBS List Relate to Other Non-SDN Lists?

The NS-MBS List is just one of several targeted, non-SDN sanctions lists that OFAC maintains. Each list has its own distinct purpose, legal basis, and set of prohibitions. Telling them apart is key to effective compliance.

What is the OFAC Non-SDN Chinese Military-Industrial Complex Companies List (NS-CMIC List)?

The NS-CMIC List identifies companies determined to be operating in the defence and related materiel sector or the surveillance technology sector of the People’s Republic of China, or owned/controlled by such entities. Its primary sanction is different from the NS-MBS list: it restricts U.S. persons from purchasing or selling any publicly traded securities of these companies. The prohibitions are narrowly focused on investment activities.

What about the Sectoral Sanctions Identifications (SSI) List?

The SSI List targets specific sectors of the Russian economy, mainly finance and energy, with narrow restrictions typically centered on new debt or equity — a much more confined scope than the broader “menu” of possible restrictions applicable under NS-MBS. See our full guide to the SSI List for the complete breakdown, including its four directives.

This article is published by an independent law firm for informational purposes only and does not represent or claim affiliation with any government body, international organization, or official authority.