|
|
|
 |
Compliance Gurus
Lending Gurus
Security Gurus
Marketing Gurus
Technology Gurus
eBanking Gurus
|
Loan Customers Subject to OFAC and CIP?
Answer by David Dickinson and Lucy Griffin, BOL Gurus
Question: I am not seeing eye to eye with my lenders on the subjects of OFAC and customer identification. Please give me some guidance on the necessity of checking OFAC and the process for identifying loan customers under the US PATRIOT Act. I want them to treat loan customers no differently from deposit customers. I want OFAC checked, I want the customer positively identified.
Answer by David Dickinson:
BIO AND CONTACT INFO
You are correct to apply OFAC and CIP to loan customers as well. Neither of these laws exempts loan customers from their coverage.
Answer by Lucy Griffin:
BIO AND CONTACT INFO
In fact, the regulators are seeing more and more situations in which loan transactions are being used to launder money and move assets. Besides, knowing who your customer is and what they are going to do with the loan proceeds is an elemental and essential aspect of underwriting. No lender should be making a loan without knowing who the customer is, whether his or her business or loan purpose is legal, and how the funds will be used.
First published on BankersOnline.com 9/8/03
Home | Compliance | Lending | Operations | Security | Marketing | Technology | eBanking
BOL Archives Privacy Policy Important Disclaimer Recommend This Site ! Contact Us
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!