I occasionally receive questions over how best to cover the bases when OFAC can easily add new specially designated nationals on a daily basis. The three key steps are to screen, screen and screen!
I. Screen Intervention Points
The intervention points for screening include:
- At the onboarding stage for business partners;
- At the order in-take stage in a given transaction; and
- At the time of shipment should there be a lag between the date of order intake versus shipment date.
It will also be necessary to batch screen on a periodic basis to make sure previously on-boarded business partners are still in the clear. That is, there are certainly instances where a customer or supplier will clear the initial screening only to turn into a bad apple at a later date.
II. URL Screen
If the company provides technical support on-line, it will even be necessary to screen for embargoed country URL addresses to avoid inadvertently undertaking business with prohibited parties. This scenario arises more frequently than not as third parties in benign countries can resell to parties in one of the embargoed countries (currently, those countries and regions include: Crimea, Cuba, Iran, North Korea and Syria).
III. Alias Screen
There is also the need to be able to pick up close spellings and aliases. This screening functionality is known as “fuzzy” logic. In fact, OFAC just upgraded its own free screening tool with this capability as reported last month (please see: https://home.treasury.gov/policy-issues/financial-sanctions/recent-actions/20210125). The URL for OFAC’s screening tool is: https://sanctionssearch.ofac.treas.gov/
IV. Key Lists To Screen Against
Moreover, if a company is globally deployed, it will be necessary to ensure other key lists are screened above and beyond the U.S. lists. At a minimum, screening should take place against these lists:
| CAATSA Section 231(d) Defense and Intelligence Sectors of the Government of the Russian Federation | US Dept. of Treasury |
| List of Foreign Financial Institutions | US Dept. of State |
| SDN, Western Balkans (OFAC) | US Dept. of Treasury |
| Correspondent Account or Payable-Through Account Sanctions (OFAC) | US Dept. of Treasury |
| Chemical Biological Weapons Concerns (DOS) | US Dept. of State |
| Non-SDN Communist Chinese Military Companies List | US Dept. of Treasury |
| Cuba Prohibited Accommodations List (DOS) | US Dept. of State |
| Countering America’s Adversaries Through Sanctions Act of 2017 (CAATSA) – Section 224 (OFAC) | US Dept. of Treasury |
| Malicious Cyber-Enabled Activities (OFAC) | US Dept. of Treasury |
| Department of State Debarred Parties (DOS) | US Dept. of State |
| Department of State, China | US Dept. of State |
| Foreign Interference in a United States Election (OFAC) | US Dept. of Treasury |
| Designated Terrorist Organization (DOS/OFAC) | US Dept. of State |
| Department of State Cuba Restricted List | US Dept. of State |
| End-User Requiring License – Entity List | US Dept. of Commerce |
| European Union Sanctions List | European Union |
| US Presidential Executive Order List | White House |
| Foreign Sanctions Evaders List (OFAC) | US Dept. of Treasury |
| Money Laundering Concerns (FINCEN) | US Dept. of Treasury |
| German Proliferation Concerns (Concern List Only) | German Government (BAFA) |
| Human Rights Information Technology (OFAC) | US Dept. of Treasury |
| Blocking Property of Certain Persons Associated with the International Criminal Court | US Dept. of Treasury |
| Iran Sanctions Act (DOS) | US Dept. of State |
| Iran, North Korea and Syria Non-proliferation Act | US Dept. of State |
| Japanese Proliferation Concerns (METI) | Japanese Ministry of Economy, Trade and Industry (METI) |
| Transfer of Lethal Military Equipment (DOS) | US Dept. of State |
| Military End User List, Commerce | US Dept. of Commerce |
| Missile Technology Concerns (DOS) | US Dept. of State |
| Merchant Vessel, Cuba (OFAC) | US Dept. of Treasury |
| Weapons of Mass Destruction Proliferators and Their Supporters | US Dept. of Treasury |
| Non-SDN Menu-Based Sanctions List (CAATSA RUSSIA) (OFAC) | US Dept. of Treasury |
| Non-SDN Palestinian Legislative Council (OFAC) | US Dept. of Treasury |
| Red Flag Concerns (BIS) | US Dept. of Commerce |
| Specially Designated Global Terrorist-SDGT (OFAC) | US Dept. of Treasury |
| Specially Designated Terrorists – SDME (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, Belarus (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, Burundi | US Dept. of Treasury |
| Specially Designated Nationals, Cuba (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, Central African Republic | US Dept. of Treasury |
| Specially Designated Nationals, Congo (OFAC) | US Dept. of Treasury |
| Specially Designated National, Hong Kong (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, Iraq (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, Iran (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, N. Korea (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, Libya (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, Lebanon | US Dept. of Treasury |
| Specially Designated Nationals, Mali | US Dept. of Treasury |
| Specially Designated Nationals, Nicaragua (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, Sudan (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, South Sudan (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, Sergei Magnitsky (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, Yemen (OFAC) | US Dept. of Treasury |
| Specially Designated National, Somalia (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, Syria (OFAC) | US Dept. of Treasury |
| Specially Designated Narcotic Trafficker (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, Ukraine (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, Venezuela (OFAC) | US Dept. of Treasury |
| Specially Designated Nationals, Zimbabwe (OFAC) | US Dept. of Treasury |
| Sectoral Sanctions Identifications List (OFAC) | US Dept. of Treasury |
| Denied Persons List (BIS) | US Dept. of Commerce |
| Transnational Criminal Organizations | US Dept. of Treasury |
| UK Proliferation Concerns (Concern List Only) | Government Authority – UK Government (DTI/BERR) |
| United Nations Security Council Sanctions | United Nations |