The US Dept of Treasury’s Office of Foreign Assets Control (OFAC) enforces economic and trade sanctions against foreign threats. It publishes a Specially Designated Nationals (SDN) list containing individuals and entities with which economic activity such as payments are restricted.
SMU complies with these sanctions through a process that imports the SDN list into SMU Financials. The system validates newly-added vendor names and addresses against the list and flags those that may be a potential match. Vendors flagged as a potential match must be reviewed and cleared before payments can be made to them.
Click here to download a document that outlines how the system notifies regarding a potential match, the procedure to verify if the match is correct, and how to block or clear the vendor for payment if the match is accurate or proves to be a false positive.
Download OFAC Procedures (pdf)