OFAC Ethereum Compliance Guide Part 1
OFAC screening for Ethereum payments, covering the listed wallet check an agent must run before sending value.
TL;DR
TL;DR: Sending ETH or tokens to an OFAC-listed wallet is a strict liability violation. Screen the destination address before the agent pays; clean wallets ALLOW and listed wallets BLOCK.
What OFAC lists
OFAC publishes sanctioned crypto wallets alongside its SDN List. Sending Ethereum to one of these addresses violates sanctions even without intent. Civil penalties start at $356,000 per violation, and the 50 Percent Rule extends blocking to entities majority-owned by a listed party.
How screening works on Ethereum
A screening API checks the destination address against 947 OFAC-listed crypto wallets and 19,218 SDN names, synced hourly from US Treasury data. The check is one HTTP call under 100 ms, fast enough to run before a transaction is signed and broadcast.
Practical guidance
- Screen the receiving address before any transfer.
- Use risk_score to flag addresses needing review.
- Start on the free tier, five checks per day, no key.