OFAC Blocked Property

Assets frozen because they involve an SDN, which must be held in a blocked account and reported to OFAC.

TL;DR

TL;DR: Blocked property is an asset tied to a designated party that must be frozen and reported to OFAC, rather than released or transferred.

What Blocked Property Is

Blocked property is any asset in which a Specially Designated National has an interest. Once identified, it must be frozen in a blocked account and reported to OFAC. It cannot be returned, transferred, or used without specific authorization. The reporting requirement is what separates blocking from a simple rejection.

Blocking Versus Rejecting

The distinction turns on whether funds were already in motion. A transaction rejected before processing needs no blocking report, while property that has already come under a blocked party's interest must be frozen and reported. Catching the match early and rejecting is the cleaner outcome.

Why Agents Should Prevent It

An AI agent that screens before paying avoids creating blocked property in the first place. sanctionsai.dev returns clean equals ALLOW and flagged equals BLOCK in under 100 ms, so a match stops the transfer before funds move. Under the 50 Percent Rule, an entity owned 50 percent or more by a blocked person is also blocked, so the check must consider indirect ownership.

Practical Guidance

• Screen before funds move so blocking never becomes necessary.
• Treat any blocked match as frozen, never released.
• Log and report blocked property through the correct channel.