Against which list must customers be checked to determine whether they are terrorists or affiliated with terrorists?

• A. OFAC Specially Designated Nationals (SDN) List
• B. The Terrorist Watch List maintained by the FBI
• C. The U.S. National Security List
• D. The Currency Transaction Report List

Answer: (A)

Screening customers against sanctions lists to block dealings with terrorists is the essential AML step here. The OFAC Specially Designated Nationals (SDN) List is the official U.S. Treasury list of individuals and entities blocked under sanctions programs. If a customer or their beneficial owner appears on this list, engaging with them is prohibited or requires special handling, which is exactly what this screening is designed to detect. That makes it the primary and most relevant reference point for identifying terrorist affiliations in customer due diligence.

The FBI Terrorist Watch List is not the standard screening reference used in financial or insurance compliance, and there isn’t a single U.S. “National Security List” used for routine screening. The Currency Transaction Report requirement relates to reporting large cash transactions, not to identifying terrorist ties.