Charles Jones Blog
In 2001 after the USA Patriot Act was first passed, title agents and others became well acquainted with the Specially Designated Nationals (“SDN”) List maintained and published by the Office of Foreign Assets Control (“OFAC”), United States Department of Treasury. The title industry learned through multiple channels that they needed to comply with the Patriot Act by performing a search of the list prior to a settlement. Signature Information Solutions started providing our Patriot Name Search in order to help our clients comply with the law.
Over the years, although new names were added and some names were modified or removed, the title industry remained strictly concerned about the SDN list. Last year, we added names from the Foreign Sanctions Evaders List (“FSE”) to our Patriot Name Search in order to help our clients comply with Executive Order 13608, which prohibits “Transactions by U.S. persons or within the United States involving FSEs …”1 This addition ensured our Patriot Name Search clients that they were complying with relevant Executive Orders and the law.
More recently we added the names on lists from what OFAC refers to as the Consolidated List. The Consolidated List includes:2
- Foreign Sanctions Evaders List (FSE)
- Sectoral Sanctions Identifications
- Palestinian Legislative Council List (NS-PLC)
- The List of Foreign Financial Institutions Subject to Part 561 (Part 561)
- Non-SDN Iranian Sanctions Act List (NS-ISA)
Why have we included all of the lists contained in the Consolidated List and not just the SDN and FSE? While there may not be a direct requirement for settlement service providers to search all of these lists, there are prohibitions and restrictions in conducting business with those on these lists. The individuals and entities contained on these lists are bad actors identified by the US government and are essentially members of our “Most Wanted List”. Therefore, we chose to include them all in our Patriot Name Search. We think our customers should know if they are inadvertently dealing with any person or entity who has been identified as an enemy of the state by our government. In our opinion, it is the right thing to do.
What are your thoughts? Are you searching SDN, the FSE and the Consolidated List?
2 As of this writing (March 2015) those are the lists contained on the Consolidated List.
The information provided is for informative purposes only and is not intended to be legal advice or a legal opinion. For legal advice, please consult an attorney.
Patrick T. Roe