Specially Designated Nationals

Definition ∞ Specially Designated Nationals, or SDNs, are individuals and entities identified by government agencies, such as the U.S. Treasury’s Office of Foreign Assets Control (OFAC), as posing a threat to national security or foreign policy. These designations result in sanctions, including asset freezes and prohibitions on transactions with them. Financial institutions are legally bound to block funds and report dealings involving SDNs. This list is a critical tool in combating illicit finance.
Context ∞ In cryptocurrency news, Specially Designated Nationals are frequently mentioned in discussions about anti-money laundering (AML) and counter-terrorist financing (CTF) compliance for digital asset businesses. Crypto exchanges and service providers must implement robust screening procedures to prevent transactions with individuals or entities on the SDN list. Regulatory actions against platforms failing to adhere to these sanctions often make headlines. The global push for regulatory compliance impacts the operational landscape for all crypto firms.