Ace the BSA Compliance Challenge 2025 – Master Your Money Wise Moves!

The agency that oversees the Specially Designated Nationals (SDN) list is the Office of Foreign Assets Control (OFAC). This list is crucial for financial institutions as it identifies individuals and entities that are subject to economic and trade sanctions based on U.S. foreign policy and national security goals. The primary responsibility of OFAC is to implement and enforce economic and trade sanctions against targeted foreign countries and regimes, terrorists, international narcotics traffickers, and those involved in activities related to the proliferation of weapons of mass destruction.

Financial institutions are required to ensure that they do not engage in transactions with parties listed on the SDN list, which is essential for compliance with U.S. regulations regarding anti-money laundering (AML) and combating the financing of terrorism (CFT). By monitoring and applying these sanctions, OFAC helps protect the integrity of the financial system against illegal activities and strengthens national security.

While other agencies like the FBI and DEA focus on law enforcement and drug-related issues, and FinCEN concentrates on financial intelligence and reporting requirements, OFAC specifically addresses sanctions and is responsible for maintaining the SDN list, making it the correct answer in this context.