OFAC Compliance

The United States Department of the Treasury’s Office of Foreign Asset Controls was formed to administer and enforce economic and trade sanctions based on US foreign policy and national security goals. These sanctions are against targeted foreign countries, terrorists, international narcotics traffickers, and those engaged in activities related to the proliferation of weapons of mass destruction.

Though OFAC was formally organized more than fifty years ago, it was not until after the USA PATRIOT Act was signed into being on October 26, 2001, that mortgage lenders started screening their broker, correspondent, and other business partners’ names against OFAC’s Specially Designated Nationals (SDN) List. “Specially Designated Nationals” or “SDNs” are those individuals and companies that have been identified as being owned or controlled by, or acting for or on behalf of, targeted countries; however, it also includes individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific. The assets of SDNs are blocked, or in other terms frozen, and U.S. persons are generally prohibited from dealing with them.

The SDN list is frequently updated when it is necessary and appropriate to add or remove names. The OFAC Compliance search is available through FLD's FRAUDCOR platform.