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#335217 - 03/17/05 11:35 PM FinCEN 314(a) request list check against ACHs
IA Offline
Member
Joined: Feb 2005
Posts: 63
I am trying to determine how to handle ACH transactions. With regard to OFAC, I've found the following article (http://www.kirchman.com/comply/hot_issues/ACH-OFAC.html):

"The guidelines work on the assumption that everyone in the ACH processing chain does what NACHA's operating rules require them to do. Under OFAC rules, ACH originating and ACH receiving banks (referred to as ODFI's and RDFI's) are required to have sound Know Your Customer procedures in place which will prevent opening accounts for blocked parties subject to OFAC sanctions. Thus, you should never have a situation in which a blocked party as a customer of an ODFI originates ACH entries. Similarly, you should not have circumstances in which the RDFI will receive payments to the account of a blocked party since the RDFI should have either declined opening the account for that party or should have frozen the account on its books. The NACHA guidelines for processing domestic ACH transactions place great reliance on this chain of Know Your Customer determinations. Additionally, since 1997, NACHA rules have required Originator/ODFI agreements to include an acknowledgement by the Originator that ACH transactions it originates comply with the laws of the United States (including OFAC). All originating bank ACH contracts with customers should require the customers to screen for OFAC hits when originating ACH entries for the bank to process."

I am trying to determine, whether or not we need to be screening ACHs against the FinCEN 314(a) request list, OR, does the same logic apply?

Thanks!!
Last edited by John Burnett; 03/18/05 01:43 PM.
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#335218 - 03/18/05 12:36 AM Re: FinCEN 314(a) request list check against ACHs
devsfan Offline
Diamond Poster
Joined: Jun 2004
Posts: 1,927
NYC
My understanding is that 314a requests are to be checked against your CIF (for accounts), wire transfers, and official checks. I have never checked against ACH and would have an impossible time doing so.

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#335219 - 03/18/05 11:06 AM Re: FinCEN 314(a) request list check against ACHs
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
There is no bridge between 314(a) checking and OFAC checking.

On 314(a)'s as long as you follow the instructions (reissued as Q & A's in December 04) you are in compliance. (They do not mention checking ACH and it would make no sense if they did.) On OFAC, what you check is entirely at your discretion based on how much risk you are willing to assume.
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In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

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#335220 - 04/19/05 07:55 PM Re: FinCEN 314(a) request list check against ACHs
Anonymous
Unregistered

Could you provide the link to those Q&A's please. I went to FINCEN and clicked on 314(a) but nothing shows for Q&A.
Our exam starts tomorrow wtih BSA up first and I just want to make sure I know what I'm talking about. Currently we are running the match against our entire customer database but we are not running it against the payable line from our official checks nor are we running a search against our account payable vendors or the originator of wires we receive. Am I in trouble here? Should I call in sick for the next few weeks?

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#335221 - 04/19/05 09:54 PM Re: FinCEN 314(a) request list check against ACHs
Banker X Offline
Junior Member
Joined: May 2003
Posts: 28
CA
Anon,

Here is the cheat sheet.

BSA examination is a "confidence game" between you and your examiner. Tip: Use lots of acronyms when talking to the examiner.

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#335222 - 04/20/05 12:08 AM Re: FinCEN 314(a) request list check against ACHs
Anonymous
Unregistered

Thank you, Thank you, Thank you

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#335223 - 04/20/05 02:45 AM Re: FinCEN 314(a) request list check against ACHs
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
But call in sick anyway! It will be more pleasant.
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#335224 - 04/20/05 07:11 PM Re: FinCEN 314(a) request list check against ACHs
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
Actually BEING sick might be more pleasant.

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