Regarding the new special measure against FBME, what are banks doing to document screening? We don't have any foreign correspondent accounts or payable through accounts. Are you checking your international wires and if so, for how long?

I've read the instructions in the final rule and it refers to OFAC screening being sufficient for wires, but I didn't find FBME on the OFAC list.

Are you doing any due diligence with domestic correspondent banks for any indirect use?

Thanks for your feedback.

Ann - You're correct that FBME and it's former name are not on the SDN List. However, I don't believe FinCEN's Final Rule states that OFAC screening is sufficient. I pulled this from the Final Rule:

"A covered financial institution is also required to take reasonable steps to identify any indirect use of its correspondent accounts by FBME, to the extent that such indirect use can be determined from transactional records maintained by the covered financial institution in the normal course of business. Covered financial institutions are expected to apply an appropriate screening mechanism to be able to identify a funds transfer order that on its face lists FBME as the financial institution of the originator or beneficiary, or otherwise references FBME. An appropriate screening mechanism could be the mechanism used by a covered financial institution to comply with various legal requirements, such as the commercially available software programs used to comply with the economic sanctions programs administered by the Office of Foreign Assets Control (OFAC)."

I read this as FinCEN using OFAC screening as an example of a way to detect activity with FBME. However, OFAC screening would not be sufficient alone, as FBME is not a sanctioned party (By OFAC).

We screen wires and ACH against the Special Measures List.

It is automated with our (and a lot of) OFAC filter you may wish to test yours if possible.

Thank you for clarifying. It does appear that OFAC is just an example, but sounded a little misleading. I don't understand why we can't have one list to check for all the bad guys!

Cape Codder, how far did you go back?

Ann, all 311-Special Measure subjects are included in our daily automated screening; when a new one is added, we don't go back, just include them going forward. If I didn't understand your question, please let me know.

Final Rule on FBME If you want the details, this is your document...

I would start screening from the time of the proposal, but would not do a "look back" unless I got a hit. Then, it would be based on curiosity, not compulsion.