Is a blocked transaction a violation?

No — blocking is the compliant response. The violation would be paying despite the match.

How long do I have to report?

OFAC blocking reports are typically due within 10 days of the block.

Blocked transactions explained — the mechanism and the obligation after the block.

A blocked transaction is one that screening stops before settlement — the counterparty matches a sanctions list, so the payment cannot proceed.

The screen returns a match (wallet_exact or name match)
The payment is blocked and logged
You review and document the block
If it is a real hit, you report per OFAC obligations (blocking report within 10 days)

A block is the firewall working — it converts a potential violation into a logged decision. The audit trail is the evidence.

An agent that hits a block should stop and surface the result — not retry endlessly. The retry scenario shows why.