Shell companies hide
sanctioned ownership.
OFAC's 50% Rule means you're liable even when a sanctioned entity doesn't directly appear on your customer list. If sanctioned parties collectively own 50% or more of an entity — at any depth — that entity is constructively blocked. Verifex traces the chain automatically.
The ownership risk most teams ignore
Hidden ownership chains
Sanctioned entities use layered corporate structures across jurisdictions. A sanctioned person may own 30% of Company A, which owns 70% of Company B — making Company B blocked under the 50% Rule.
Strict liability
OFAC FAQ No. 401 makes it clear: “U.S. persons are prohibited from dealing with blocked property, including property interests of entities owned 50% or more by blocked persons.” Not knowing is not a defense.
Manual verification fails
Manually tracing ownership chains across company registries is error-prone, slow, and doesn't scale. By the time you check, the ownership structure may have changed.
Automatic ownership chain traversal
Verifex connects to the GLEIF database (3.28M+ Legal Entity Identifiers) and automatically traces corporate ownership chains — calculating aggregate sanctioned ownership at every level.
GLEIF LEI lookup
Look up any company by Legal Entity Identifier to get its legal name, jurisdiction, registration status, direct parent, and ultimate parent entity.
OFAC 50% Rule calculator
Traverse the full ownership chain up to depth 10. Calculate aggregate sanctioned ownership percentage. Flag any entity that breaches the 50% threshold.
Documented evidence
Every UBO check is logged with the full ownership graph, calculated percentages, and sanctioned entity references. Complete audit evidence for your records.