Sanctions authorities often allow for sanctions to be imposed on non-US persons who engage in material transactions with individuals designated as Specially Designated Nationals (SDNs). This means that even individuals outside of US jurisdiction may face sanctions for doing business with SDNs. Brendan Hanifin, a partner at the law firm Ropes & Gray in Chicago, explains that many non-US persons are now hesitant to transact with these designated individuals, regardless of jurisdictional considerations.
With the US dollar playing a central role in international financial transactions, being designated as an SDN can severely limit an individual’s access to the global financial system. This restriction can have far-reaching consequences for individuals like Ly, whose ability to engage in financial transactions on an international scale may be significantly impacted.
It is crucial for individuals and businesses to be aware of the potential implications of engaging in transactions with SDNs, even if they are not based in the US. The reach of sanctions authorities extends beyond US borders, making it essential for all parties involved in international transactions to exercise caution and due diligence.
