SDN List

Definition ∞ The SDN List stands for the Specially Designated Nationals and Blocked Persons List, maintained by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC). This list identifies individuals and entities with whom U.S. persons and businesses are generally prohibited from conducting transactions. In digital assets, screening against the SDN List is a critical component of anti-money laundering (AML) and sanctions compliance. It aims to prevent illicit financial flows.
Context ∞ Screening against the SDN List is a mandatory compliance requirement for digital asset service providers operating within or interacting with the U.S. financial system. Discussions frequently involve the challenges of applying traditional sanctions screening to pseudonymous blockchain transactions and the need for advanced analytics. The continuous updating of this list and its implications for global digital asset transfers remain a significant operational and regulatory consideration.