OFAC Blocked Property Report

A mandatory filing with OFAC within 10 business days of blocking any property or transaction due to sanctions. Requires details of the blocked party and assets.

TL;DR

TL;DR: When an organization blocks property or a transaction under sanctions, it must file a report with OFAC, typically within 10 business days, describing the blocked party and the assets involved.

When the report is required

The obligation arises the moment property or funds are blocked, meaning they are frozen and cannot be returned to the blocked party or moved onward. This happens when a transaction is already in the institution's control and the counterparty turns out to be sanctioned. The report is not optional, and the clock starts when the block occurs.

What the report includes

The filing describes the blocked party, the nature and value of the property or funds, the date of the block, and the basis for blocking, such as the SDN designation. The goal is to give OFAC a complete record of what was frozen and why.

Why the timing matters

Missing the 10 business day window is itself a compliance failure, separate from the underlying transaction. Late or absent filings compound the original problem and draw additional scrutiny.

How screening changes the outcome

A payment that is screened before it moves is rejected, not blocked, because no funds are ever taken into custody. That path avoids the reporting obligation entirely. An agent using sanctionsai.dev screens the counterparty first and only moves funds on a clean result, which keeps blocked property, and the associated filing, from occurring in the first place.