Question: What are we required to do, as far as OFAC is concerned, if we buy RE loans from a mortgage broker?
Answer: From an official Q&A on the OFAC Web site: “Does my bank need to check the OFAC list when selling
cashier's checks and money orders? In the case of cashier's checks, do I need to check both the purchaser and the payee? As a mortgage lender, do I need to check both the purchaser and the seller's name against the SDN list?"
“Every transaction that a U.S. financial institution engages in is subject to OFAC regulations. If a bank knows or has reason to know that a target is party to a transaction, the bank's processing of the transaction would be unlawful.”
You should scan these purchases in advance rather than rely on the seller to have done so. You do not want to purchase an
asset that then has to be blocked when payments are received.
BankersOnline is a free service made possible by the generous support of our
advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all
banking professionals. Support our advertisers and sponsors by clicking
through to learn more about their products and services.
Print Friendly!
Email This Article!
Discuss NOW!
