What is the OFAC SDN list?
As part of its enforcement efforts, the Office of Foreign Assets Control (OFAC) maintains a list of Specially Designated Nationals (SDNs). U.S. companies are prohibited from dealing with the individuals, groups and entities on the SDN list
U.S. insurers must comply with OFAC requirements. Adhering to anti-money laundering (AML) policies and regulations is an important part of this compliance.
How often is the SDN list updated?
According to the U.S. Department of the Treasury:
The SDN list is frequently updated. There is no predetermined timetable, but rather names are added or removed as necessary and appropriate.
What does this mean for insurers?
Since names are added to the OFAC SDN list frequently, it is imperative that you rescan your database frequently to ensure updates to the SDN list are captured. Similarly, every time you receive a payment from a customer, we recommend that you cross-reference that customer’s name against the most recent SDN list.
Since it is also common for names on payout lists to be added or changed, we recommend that you scan the last SDN list you may have obtained against the most recent or current SDN list to avoid any bad actors from creeping in.
How can LexisNexis help?
LexisNexis® Bridger Insight® XG can help you support and streamline your compliance workflow, case management and reporting processes. Its Automatic Batch option enables you to set up automatic scans of your entire book of business every time there’s an OFAC update. Learn more about LexisNexis Bridger Insight XG.