US Treasury removes 80 outdated names from OFAC sanctions blacklist
In brief
- Treasury removed ~80 outdated entries from the SDN sanctions blacklist, including deceased individuals and defunct companies.
- Treasury Secretary Bessent emphasized refocusing OFAC resources on active, sophisticated threats rather than maintaining old designations.
- None of the removed names were crypto-related, though formal reviews could eventually extend to wallet addresses and protocol entities.
- US banks, brokers, and exchanges must screen all transactions against the SDN list by law.
- This marks the first formal SDN list effectiveness review in recent years.
Streamlining the Sanctions List
The SDN list currently contains thousands of entries: individuals, shell companies, vessels, and crypto wallet addresses. When a name sits on that list, it effectively cuts the designated party off from the US dollar system. Every bank, broker, exchange, and money transmitter in the US is legally required to screen transactions against it.
Throughout 2025 and into 2026, name removals from the SDN list were typically handled on a case-by-case basis without a formal review framework. The Treasury's move marks a departure from that approach, establishing a more systematic process for evaluating which designations remain operationally necessary.
Focus on Active Threats
Treasury Secretary Scott Bessent framed the review in terms of operational efficiency. On May 19, he emphasized the importance of disrupting Iran's financing networks, signaling that the administration wants OFAC's resources focused on active, sophisticated threats rather than maintaining entries for parties no longer in play.
"the administration wants OFAC's resources pointed at active, sophisticated threats rather than spent maintaining outdated designations" — Treasury Secretary Scott Bessent
Crypto Implications
None of the roughly 80 names being removed appear to be crypto-related. No wallet addresses, no DeFi protocols, no exchange entities made the cut this time.
That said, OFAC has been increasingly active in the crypto space in recent years, adding wallet addresses and protocol-related entities to the SDN list. The fact that a formal effectiveness review is now underway could eventually extend to crypto-related entries as well. Whether the Treasury applies the same operational lens to those designations remains to be seen.
