OFAC sanctions for beginners

OFAC sanctions block dealing with listed people, entities, and wallets, and screening is how you check before transacting.

TL;DR

TL;DR: OFAC sanctions prohibit US persons from dealing with Specially Designated Nationals and listed crypto wallets, enforced with strict liability and penalties starting at $356,000; screening is how you check a counterparty first.

What OFAC is

OFAC stands for the Office of Foreign Assets Control, part of the US Treasury. It administers sanctions programs that restrict dealings with certain countries, people, and entities. The central list is the Specially Designated Nationals (SDN) List, published as the US Treasury sdn.csv file.

What the SDN List is

The SDN List names the people and entities that are blocked. The current data holds 19,218 SDN names. In crypto, OFAC also designates specific wallet addresses, with 947 listed wallets tracked in live screening data, and 16 jurisdictions are covered.

What strict liability means

Strict liability means intent is not required: transacting with a blocked party by accident is still a violation, with civil penalties starting at $356,000. Under the 50 Percent Rule, an entity owned 50 percent or more by a blocked person is also blocked. Your first practical step is a free screening tier (5 checks per day, no signup, no key) to check every counterparty before value moves.