NEWSLETTER-2019-metin

387 MISCELLANEOUS • Conducting business with Iranian parties registered in other countries; • Conducting business with entities that are partially owned or financed by the Government of Iran; • Use of third parties to circumvent prohibitions; and • Servicing/installing equipment in facilities using Iranian-so- urced petroleum products. List-based Sanctions The use of list-based sanctions, or smart sanctions, has allowed the US government to more precisely target persons and groups who pose a threat to national security, foreign policy, and the economy. Indeed, list-based sanctions have been particularly helpful from a law enforcement perspective of the OFAC sanctions. The OFAC prohibits transactions between US persons and indi- viduals, entities (e.g., corporations), and organizations on the Specially Designated Nationals and Blocked Persons List, or “SDN list.” The SDN list, which is amended on an “as-needed” basis, targets persons involved in terrorism, narcotics trafficking, weapons proliferation, hu- man rights abuses, genocide, and transnational organized crime. The US government has demonstrated a preference for list-based sanctions for two reasons: Firstly, smart sanctions are able to target particular parties without resulting in substantial collateral that may arise from country-based sanctions imposed on a targeted nation’s population. Secondly, list-based sanctions can be effectively enforced through automated screening, which enables US persons to check cli- ents and businesses against the SDN list. Because of their flexibility and precision, smart sanctions are now the standard for OFAC sanc- tions programs. Penalties for Violating Primary Sanctions The OFAC’s Economic Sanctions Enforcement Guidelines set out the policy and process for determining an appropriate enforce-