OFAC Sanctions List in Costa Rica: A Guide for Businesses and Investors

Understanding the OFAC Sanctions List

The Office of Foreign Assets Control (OFAC) maintains a list of Specially Designated Nationals and Blocked Persons, also known as the SDN List. This list includes various other sanctions lists administered by the agency.

Accessing the SDN List

The SDN List is available through the Sanctions List Search tool. However, users must be cautious when interpreting the results due to:

• Approximate string matching: The search tool uses this method to identify possible matches between user input and names on the SDN List or other sanctions lists.
• False positives: This can occur due to misspellings or similar-sounding names.

Mitigating False Positives

To minimize the risk of false positives, users can adjust a slider-bar to set a confidence threshold for potential matches. However, OFAC provides no guidance on selecting an optimal confidence level.

Best Practices for Using the Sanctions List Search Tool

When relying solely on the Sanctions List Search tool, exercise caution and:

• Conduct proper due diligence: Ensure compliance with sanctions regulations.
• Develop robust compliance procedures: Regularly update knowledge on the latest sanctions regulations.

The Importance of Compliance in Costa Rica

Businesses and investors in Costa Rica must be aware of the risks associated with doing business with individuals or entities on the OFAC sanctions list. Failure to properly screen clients or partners can result in:

• Significant financial penalties: Reputational damage is also a significant concern.

Conclusion

To avoid these risks, it’s essential for companies operating in Costa Rica to develop robust compliance procedures and regularly update their knowledge on the latest sanctions regulations. By doing so, they can ensure compliance with OFAC regulations and maintain a strong reputation in the market.