US Treasury to Remove 80 Outdated Names from Sanctions List

US Treasury Launches Review of Sanctions Lists

The U.S. Treasury has initiated a review of its sanctions programs and lists to enhance effectiveness and ease compliance burdens on financial institutions, according to a document seen by Reuters on Wednesday. The Treasury plans to announce on Thursday the removal of approximately 80 outdated names from its Specially Designated Nationals and Blocked Persons (SDN) sanctions list.

Outdated Names to Be Removed

A Treasury official stated that the initial tranche includes deceased individuals, defunct companies, and other outdated entities. The SDN list currently contains over 17,000 names, according to the Office of Foreign Assets Control (OFAC).

Future of Sanctions

Treasury Secretary Scott Bessent previewed the effort in a speech in Paris last week, noting that sanctions are not meant to be a 'forever tool' and that removal can indicate positive behavioral changes. The review will prioritize sanctions with clear economic and national security impact, such as sanctions evasion schemes.

Reducing Compliance Burden

The Treasury highlighted that businesses often expend significant resources screening for low-risk matches and reviewing false positives, diverting attention from high-risk evasion schemes. The department is exploring ways to ease this burden and prioritize more impactful activities.

Growth of Sanctions

The use of targeted financial sanctions has grown dramatically, with new names added increasing from 880 in 2017 to over 3,000 in 2024. This coincides with increased sanctions on Iran and its proxies, and on Russia over the war in Ukraine. The Treasury has scaled back sanctions on Syria and Venezuela.