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#1960974 - 09/10/14 08:14 PM
Non-signers transacting on business accounts
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Joined: Feb 2012
Posts: 165
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Do any institutions allow non-signers to conduct transactions in business accounts? Lets say a bookeeper, who is not a signer, the business owner, wants to let her send wires. What due diligence, information do you collect, on those individuals? Do you conduct OFAC checks?
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#1961034 - 09/10/14 09:08 PM
Re: Non-signers transacting on business accounts
BSAAnonymous
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Galveston, TX
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Unless you have a resolution authorizing these individuals to conduct such transactions, any transactions conducted and then disputed by the business entity is going to place the bank in a very bad situation.
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#1961047 - 09/10/14 09:24 PM
Re: Non-signers transacting on business accounts
BSAAnonymous
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New York City
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As Randy indicated, you have a bigger problem than OFAC checking parties if you let unauthorized parties initiate funds transfers from your business accounts.
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#1961089 - 09/11/14 12:04 PM
Re: Non-signers transacting on business accounts
Princess Romeo
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And OFAC would not really apply to an authorized signer who has no ownership intrest. I would strongly disagree with that statement as the authorized signatory is in control of the funds even if they do not own the funds. U.S. law requires that assets and accounts of an OFAC-specified country, entity, or individual be blocked when such property is located in the United States, is held by U.S. individuals or entities, or comes into the possession or control of U.S. individuals or entities. http://www.ffiec.gov/bsa_aml_infobase/pages_manual/olm_037.htm
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#1961091 - 09/11/14 12:33 PM
Re: Non-signers transacting on business accounts
edAudit
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And OFAC would not really apply to an authorized signer who has no ownership intrest. I would strongly disagree with that statement as the authorized signatory is in control of the funds even if they do not own the funds. U.S. law requires that assets and accounts of an OFAC-specified country, entity, or individual be blocked when such property is located in the United States, is held by U.S. individuals or entities, or comes into the possession or control of U.S. individuals or entities. http://www.ffiec.gov/bsa_aml_infobase/pages_manual/olm_037.htm ^^ This!
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#1961092 - 09/11/14 12:44 PM
Re: Non-signers transacting on business accounts
Princess Romeo
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And OFAC would not really apply to an authorized signer who has no ownership intrest. I'd hate to try and defend this against an OFAC violation or in court. Put simply, if you are involved in the payment stream, OFAC applies to you.
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#1961105 - 09/11/14 12:59 PM
Re: Non-signers transacting on business accounts
BSAAnonymous
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The core problem is that you need an authorizing resolution from the entity before you will let them do anything. After they are given the authority to act you can beat them senseless with the OFAC list if you want to.
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#1961113 - 09/11/14 01:18 PM
Re: Non-signers transacting on business accounts
BSAAnonymous
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Thank you all. Absolutely, there would be a resolution from the entity allowing these individuals to conduct these transactions.
Regarding OFAC - what if one of these "non-signers" is a terrorist on the SDN List - I would want to screen everyone.
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#1961119 - 09/11/14 01:31 PM
Re: Non-signers transacting on business accounts
BSAAnonymous
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Regarding OFAC - what if one of these "non-signers" is a terrorist on the SDN List - I would want to screen everyone.
Exactly. I would screen even if it was not required (see above posts). Who would like to be the bank that financed a terrorist act?
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#1961129 - 09/11/14 01:50 PM
Re: Non-signers transacting on business accounts
BSAAnonymous
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In order to transact on the account, would they not have a record built into your core system that would automatically be screened??? If you have an authorized party on an account without a core system record, how in the world do you manage them operationally??
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#1961314 - 09/11/14 06:03 PM
Re: Non-signers transacting on business accounts
BSAAnonymous
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The West
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Well said Randy! A record must exist in your core for any person that can transact on an account.
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#1961388 - 09/11/14 08:12 PM
Re: Non-signers transacting on business accounts
BSAAnonymous
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That's all fine to say, but I dare say there are a fair number of banks out there that don't have systems that accommodate related records for authorized signer information.
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#1961394 - 09/11/14 08:17 PM
Re: Non-signers transacting on business accounts
BSAAnonymous
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Galveston, TX
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They must not be running any of the major core systems available then............
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#1961408 - 09/11/14 08:35 PM
Re: Non-signers transacting on business accounts
BSAAnonymous
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Cape Cod
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Agree.
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John S. Burnett
BankersOnline.com
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#1961474 - 09/12/14 01:30 PM
Re: Non-signers transacting on business accounts
rlcarey
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Pulling people out of the ditc...
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They must not be running any of the major core systems available then............ or they disable it...
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