If a loan meets underwriting standards but is a true "hit" on OFAC's Specially Designated Nationals (SDN) list, what do we use as a denial reason on the adverse action notice?

OFAC's answer

If you have confirmed with OFAC that you have a "good hit" on the [SDN list](https://ofac.treasury.gov/specially-designated-nationals-and-blocked-persons-list-sdn-human-readable-lists) or one of OFAC's [other sanctions lists](https://ofac.treasury.gov/other-ofac-sanctions-lists), there is no reason not to explain that to the customer. The customer can [contact](https://ofac.treasury.gov/contact-ofac)OFAC directly for further information.