What is sanctions screening for DAOs?

Sanctions screening for a DAO means checking treasury transactions, proposal recipients, and contributor wallets against the OFAC SDN List.

TL;DR

TL;DR: It is the process of checking every address a DAO pays, funds, or rewards against the SDN List before the transaction settles, so the DAO does not transact with a blocked party.

Why DAOs face the same exposure

OFAC treats a DAO like any organization that moves value. A DAO holds a treasury, runs governance proposals, and pays contributors, all through wallet addresses. OFAC applies strict liability, so a treasury payment to a designated wallet is a violation even when nobody involved intended one. The 50 Percent Rule also extends blocking to any entity that a blocked person owns 50 percent or more.

What to screen

• Treasury transactions before they broadcast.
• Proposal recipients before funds are released.
• Contributor and grant wallets before each payout.

How screening fits a DAO

SanctionsAI screens a counterparty before the DAO pays: a clean result returns ALLOW and a flagged result returns BLOCK. The check is one HTTP call in under 100 ms, covering 947 OFAC-listed crypto wallets and 19,218 SDN names, synced hourly across 16 jurisdictions.