In which scenarios will the Office of Foreign Assets Control's 50% Rule apply to Entity...

The OFAC 50% Rule states:

• Any entity owned 50% or more — directly or indirectly — by an SDN or SDN-owned entity is itself automatically blocked.

• Ownership is cumulative through all tiers.

Apply the rule:

✔ A – Blocked Person X has direct + indirect ownership in Entity C exceeding 50% → Blocked.

✔ C – Ownership cascades: SDN → A → B → C; each at 50%. Result: Entity C is blocked.

✔ D – Blocked Entity A (>50%) → owns B (>50%) → owns C (>50%). All downstream entities are blocked.

Not blocked:

• B = 25% + 25% = 50% but SDN does not directly own A or B — the SDN owns A and B, but A and B each are not blocked themselves because ownership is not aggregated across separate entities unless they hold shares. Therefore, C is not blocked.

• E = Only 25% flows into Entity C.

• F = Neither ownership chain reaches 50%.