What is OFAC sanctions screening software?

Screening software checks names, wallets, and countries against OFAC's SDN list before money moves.

TL;DR

TL;DR: OFAC sanctions screening software compares a counterparty against the SDN list and returns a decision: clean means ALLOW, flagged means BLOCK.

What it checks

Screening software automates a comparison that used to be a manual search of a PDF. It takes a name, a crypto wallet address, or a jurisdiction and checks it against the SDN list, the Specially Designated Nationals and Blocked Persons list maintained by the US Treasury. A clean match returns ALLOW; a hit returns BLOCK.

How it fits a payment flow

In practice the check happens at a precise moment: right before an agent or a payment system moves funds. A screening API such as sanctionsai.dev makes this a single HTTP call that finishes in under 100 ms, fast enough to run inside an automated flow. It also screens against 947 OFAC-listed crypto wallets and applies the 50 Percent Rule for ownership by a blocked person.

Why automation matters

Automation matters because the obligation is strict liability: intent is not required, and civil penalties start at $356,000 per violation. Manual screening does not scale to agent payments or high-volume flows. Software makes the decision consistent, logged, and repeatable.

What to look for in the software

When evaluating screening software, prioritize coverage, speed, and logging. Coverage means the SDN list plus the 947 OFAC-listed crypto wallets and the 50 Percent Rule. Speed means a decision in under 100 ms. Logging means every check is timestamped and retrievable, so the software produces an audit trail, not just an answer.