OFAC FAQ (Current) # 125 - Questions about SDNs

Date issued: Nov. 18 2011

TURBOFAC Commentary (159 words)

Notes:

1) This is a notable FAQ that provides a broadly applicable safe harbor for persons dealing with SDNs where "the only sanctions reference in the transaction is a weak AKA" and "the [U.S.] person involved in the processing had no other reason to know that the transaction involved an SDN or was otherwise in violation of U.S. law" ("and the [U.S.] person maintains a rigorous...compliance program"). This unofficial application of the "reason to know" standard as threshold for determining whether to issue a civil penalty in the context of strict liability violations is important with respect to the "weak alias" issue specifically addressed. However, it is also clear that the "reason to know" threshold applies where there is no sanctions reference in a transaction at all. Refer to General Note on the terms "knowingly," "should have known" and "reason to know" in the Primary Sanctions, Secondary Sanctions and Derivative Designation Contexts (System Ed. Note).