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.

OFAC 50 Percent Rule (aggregation principle).

Treatment of entities majority-owned by SDNs as SDNs for ownership calculations.