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OFAC FAQ: The SDN List vs. the BIS Denied Persons List

56. What is the difference between the SDN List and the Commerce Department's List of Denied Parties? Why can't they be integrated into one list?

Specially Designated Nationals and Blocked Persons (SDNs) are individuals and entities located throughout the world that are blocked pursuant to the various sanctions programs administered by OFAC. SDNs can be front companies, parastatal entities, or individuals determined to be owned or controlled by, or acting for or on behalf of, targeted countries or groups. They also can be specially identified individuals such as terrorists or narcotics traffickers. U.S. persons are prohibited from engaging in any transactions with SDNs and must block any property in their possession or under their control in which an SDN has an interest. SDNs are designated primarily under the statutory authority of the Trading With the Enemy Act, the International Emergency Economic Powers Act, the Anti-Terrorism and Effective Death Penalty Act and the Foreign Narcotics Kingpin Designation Act. Implementing regulations can be found in Chapter V, Title 31 of the U.S. Code of Federal Regulations.

The Bureau of Industry and Security (“BIS”) of the U.S. Department of Commerce maintains separate lists for the purposes of the programs that it administers (including the Denied Persons List and the Entity List). The Denied Persons List consists of individuals and companies that have been denied export and re-export privileges by BIS. The Entity List consists of foreign end users who pose an unacceptable risk of diverting U.S. exports and the technology they contain to alternate destinations for the development of weapons of mass destruction. Accordingly, U.S. exports to those entities may require a license. Authority for the Denied Persons List and the Entity List can be found in Title 15, Part 764, Supplement No. 2 and Title 15, Part 744, Supplement No.4 of the U.S. Code of Federal Regulations, respectively.

The foreign policy objectives and legal requirements of the SDN list are significantly different from those of the BIS lists. The Commerce lists do not involve a full trade embargo of all goods and services nor do they require U.S. persons to block property. They are concerned with issues of export privileges and export licensing. The unique goals of the OFAC and BIS programs preclude the creation of a unified “master list.” [09-10-02]

 

Categories: BIS Updates Export Control OFAC Updates Sanctions Lists Sanctions Programs Sanctions Regulations

eric9to5

1 reply

  1. Any individual or entity listed on above BIS lists of Denied Persons List, Unverified List, Entity List, can do transactions with parties of other countries but currency of transaction is USD whereas if the party is SDN, then it cant?

    Any individual or entity listed on above BIS lists of Denied Persons List, Unverified List, Entity List, can do transactions with parties of USA but for other goods.

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