True or False: OFAC regulations require credit unions to block transactions involving parties on the SDN List.

The assertion that OFAC regulations require credit unions to block transactions involving parties on the SDN List is true. The Office of Foreign Assets Control (OFAC) sanctions programs are designed to protect the U.S. financial system and national security by prohibiting transactions with individuals and entities identified on the Specially Designated Nationals (SDN) List. This regulation mandates that financial institutions, including credit unions, must actively refuse to engage in any transactions that benefit the individuals or entities specified on this list.

Credit unions are required to comply with these regulations to prevent any financial dealings that could be linked to sanctioned individuals or organizations. This compliance includes blocking assets and reporting the transactions to OFAC. The responsibilities under these regulations apply universally, not limited to specific types of transactions or certain circumstances like national emergencies. Therefore, it is essential for credit unions to have robust compliance processes in place in order to identify and block transactions involving these parties, fully adhering to OFAC guidance.