Some OFAC SDNs have relatively little information published about them, but for many, most in fact we know what country they operate out of, for some we even have a building address.
So let’s have a look where they all are …
If we rolled back 10 years we would see the most populated with SDN countries being Colombia, Mexico, and Bolivia, driven by the war on drugs. Nowadays Iran takes the top spot.
But this isn’t the whole picture, some countries are bigger than others, and you would expect a country with a high population to have more SDNs, so how about if we re-plot but with the number of SDNs (both individual and entity) per head of population …
What you can’t see are 4 countries that should be off the scale bright red, you can’t see them because they are too small – British Virgin Islands, Marshal Islands, Gibraltar, and Malta. In fact all of the top ten spots go to small nations, the first nation on the list with a significant population is Panama followed by Cyprus and the UAE.
So how does this compare with the EU List you might ask:
Of course this is all very interesting, but how do we put it to practical purpose? Geographical Risk is a major factor in KYC processes, and in determining matching strategies. Knowing where SDNs are most likely to be found is just one factor in forming a Country Risk model.
You are welcome to talk about how to create your own Country Risk Index or leverage from our own index. which features over 100 different measures, including SDN counts and SDN densities.
Please pick up our financial crime brochure here.
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