OFAC adds entities to SDN List—transaction ban in effect
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has added one or more persons to its Specially Designated Nationals and Blocked Persons List (SDN List), effective immediately. All property and interests in property subject to U.S. jurisdiction are blocked, and U.S. persons are prohibited from engaging in transactions with these designated entities. Shippers, freight forwarders, and exporters must screen all transactions against the SDN List to ensure compliance and avoid severe penalties.
Photo: Jan van der Wolf / PexelsOFAC adds entities to SDN List—transaction ban in effect
On May 14, 2026, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) published a Notice of Sanctions Action adding one or more persons to OFAC's Specially Designated Nationals and Blocked Persons List (SDN List). This action is effective immediately and triggers a comprehensive transaction ban.
All property and interests in property subject to U.S. jurisdiction of these persons are blocked, and U.S. persons are generally prohibited from engaging in transactions with them.
OFAC determined that applicable legal criteria were satisfied to justify designation. Once on the SDN List, an entity becomes a denied party—all U.S. persons, including exporters, importers, freight forwarders, and payment processors, must cease all dealings with the designated entity.
Who is affected
Any shipper, freight forwarder, or e-commerce merchant that imports from, exports to, or transships through designated persons faces automatic compliance violations and civil penalties up to $300,000 per transaction, plus potential criminal liability. The SDN List applies globally to any transaction involving U.S. persons or U.S.-jurisdiction property, regardless of where the goods originate or are destined.
Designated persons include individuals, companies, governments, and vessels. Once listed, blocked property cannot be moved, sold, or transferred without an OFAC license. Bank transfers, letters of credit, and freight payments involving a designated entity are prohibited.
What this means for shippers
Screen every customer, supplier, and counterparty against the current SDN List before accepting shipments or issuing invoices. Download the OFAC SDN List in CSV, XML, or PDF format from treasurydirect.gov and run automated checks on shipper/consignee names and beneficial owners. A single transaction with a blocked person incurs a $300,000 civil penalty—inaction costs far more than compliance. Use a dedicated sanctions-screening tool integrated into your customs invoice and landed-cost workflow to flag matches in real time. Do this today, not after the next audit notice.
