Though a moral psychology of guilt and taking responsibility is central to moving beyond violation, we must also understand denial as a moral psychological phenomenon. This may be straightforwardly ethical in its form or may disclose an underlying metapsychology of what Freud called disavowal. This chapter considers Stanley Cohen’s investigation of these terms in his pathbreaking States of Denial (2001). Cohen supported but was also deeply ambivalent about Freud’s account. He questioned the relationship between the unconscious and responsibility, the possibility for dissembling and the importance of psychological over sociological determinants of action. I defend an account of psychological denial or disavowal by addressing these concerns. The analysis is then applied to Joshua Oppenheimer’s film The Act of Killing (2014) concerning guilt and denial among perpetrators of the Indonesian genocide (1965-6). At home, these men are treated as celebrities, their actions unquestioned. The opportunity to make a film of their past as they wish challenges denial and brings out guilt feelings which are expressed morally, psychologically and physiologically. The film’s method is viewed as a form of psychoanalytic encounter providing a transitional space (Winnicott) to deal with guilt. It reveals the capacity for guilt even when it is socially denied in an unusual form of transitional justice.