By · · last updated 2026-08-08
An entity owned 50% or more by blocked persons is itself blocked — even if never listed. How the rule works, how it fails, and how to screen for it.
OFAC's 50-percent rule is the compliance detail that catches teams who screen names but not ownership.
An entity that is owned 50% or more, individually or in the aggregate, by one or more blocked persons is itself treated as blocked — even if the entity never appears on the SDN list.
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Name-only screening passes the shell company: no match on the entity's name. The blocked owner sits one level up in the ownership chain. The 50% aggregate test is the layer that catches it.
For corporate counterparties: gather ownership data, screen each owner against the SDN list, apply the aggregate threshold. This is where sanctions screening meets KYB.
Wallet screening (947 addresses) covers the payment path; name screening (19,218 names) covers counterparties; ownership screening covers the 50% gap. Three layers, one compliance posture.
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