Glossary

What is a Blocked Person under OFAC?

An individual or entity whose property and interests in property are blocked under OFAC sanctions programs.

Definition

When assets are blocked, they cannot be transferred, paid, exported, withdrawn, or otherwise dealt in. Any transaction involving a blocked persons property is prohibited. This includes transactions initiated by AI agents on behalf of US persons.

Regulatory context

A blocked person is any individual or entity whose property and interests in property are frozen under US economic sanctions authorities. Blocked persons appear on the OFAC SDN List or are described in an Executive Order or OFAC regulation.

Who it affects

Blocked persons include designated terrorists, drug traffickers, malicious cyber actors, entities linked to sanctions evasion, and officials from sanctioned governments. Over 10,000 individuals and entities are on the current SDN List.

Relevance to AI agents

AI agents that move money must check counterparties against the SDN List before each transaction. Paying a blocked person triggers strict liability penalties. The agentmail API screens wallets, names, and countries against the full SDN List in under 100ms.

agentmail coverage

agentmail covers 19,086 sanctioned names, 782 crypto wallets, and 16 embargoed jurisdictions from the OFAC SDN List.

FAQ

1. How is a blocked person different from an SDN?

The terms are essentially interchangeable. The SDN List contains blocked persons. OFAC sometimes distinguishes between blocked persons (all property frozen) and entities subject to non-blocking sanctions (some restrictions apply).

2. Can a blocked person become unblocked?

Yes. OFAC may delist individuals through the removal process, settlement agreements, or changes in sanctions policy. agentmail refreshes daily so stale entries are not held against counterparties.

3. Does blocked person status apply to crypto wallets?

Yes. OFAC explicitly treats crypto wallet addresses as blocked property since 2018. The SDN List now includes over 782 sanctioned wallet addresses across multiple chains.

Related glossary terms

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