Do I need sanctions screening for stablecoin transactions?

Yes. Stablecoin transfers — USDC, USDT, DAI, or any other — are funds transfers subject to OFAC jurisdiction. The fact that they are "stable" or pegged to fiat currency does not exempt them from sanctions compliance.

Why stablecoins are NOT exempt

OFAC's jurisdiction is based on US person involvement, not the asset type. If a US person sends a stablecoin to an SDN-listed wallet, it is a prohibited transaction — period. The asset being a stablecoin rather than a volatile cryptocurrency provides no defense.

The screening requirement

Screen the recipient wallet before every stablecoin transfer. For AI agents executing stablecoin payments autonomously, this screening must be programmatic — embedded in the payment function, not a manual step.