OFAC Designation Authority

The legal basis, typically an Executive Order or statute, under which OFAC can designate individuals and entities.

TL;DR

TL;DR: Designation authority is the legal basis under which OFAC adds a party to the SDN List, usually an Executive Order or statute tied to a sanctions program.

Where Authority Comes From

OFAC, part of the US Treasury, does not designate on its own discretion alone. Each designation rests on an Executive Order or a statute that defines the program and the criteria for listing. The SDN List is the public output of that authority.

Why Authority Shapes the List

The legal basis determines what OFAC can list and under what conditions. When a program expands or a new Executive Order is issued, the SDN List grows. A screening tool is only current if it tracks those changes, which is why list synchronization matters.

What It Means for Screening

For an agent paying a counterparty, the practical question is whether the current SDN List reflects the latest designations. sanctionsai.dev syncs hourly across 19,218 SDN names and 947 OFAC-listed crypto wallets, so changes driven by new designations reach the screen quickly. The 50 Percent Rule also extends a designation to entities owned 50 percent or more by a blocked person.

Practical Guidance

• Treat the SDN List as authoritative for screening decisions.
• Rely on hourly-synced data to reflect new designations.
• Apply the 50 Percent Rule when ownership is indirect.