ABC Industries is a legal entity owned by Entity X (30%), Entity Y (25%), and...

OFAC’s 50 Percent Rule requires aggregation of ownership by SDNs and entities owned 50% or more by SDNs.

Ownership breakdown:

• Entity X (SDN) → 30%

• Entity Y (owned 80% by an SDN) → treated as an SDN → contributes 25%

• Total SDN-derived ownership = 30% + 25% = 55%

Since aggregate SDN ownership exceeds 50%, ABC Industries is automatically considered a blocked entity, even though Entity Z is not sanctioned.

Options B and C are incorrect because explicit listing is not required—ownership triggers blocking. Option A is incorrect because one SDN at 30% alone is insufficient, but combined ownership is.