Definition
OFAC 50 Percent Rule
An entity owned 50% or more, directly or indirectly, individually or in the aggregate, by one or more blocked persons is itself blocked — even though it does not appear on the SDN list.
By Bart Mierzejewski · Founder, FinCrime Desk · Reviewed Sep 19, 2026
Why it matters
This is the rule that makes sanctions screening an ownership-research problem rather than a list-matching problem. A clean screening hit against the SDN list proves very little on its own for a corporate counterparty.
In practice
Aggregation matters: two blocked persons each owning 30% of an entity block it between them. Ownership is followed through layers. Control without 50% ownership does not automatically block the entity, though OFAC cautions against dealing with entities controlled by blocked persons.