Must the OFAC list be checked prior to issuing or redeeming a U S savings bond?

It would be a good idea. The Gov't is probably not going to catch a match when the bond is issued, however they will hold you responsible if you do not catch it when redeeming it. Also, someone could be added to the SDN list after purchasing the bond.

Tha chances that someone purchased a savings bond, redeemable in 18 years for face value, and is on the OFAC list is slim. This is where your bank needs to have a risk assessment done on monetary instruments and what does and does not need to be included in OFAC. Theoretically, one could purchase a savings bond today for the purpose of money laundering, but it seems highly unlikely that this would occur.

We don't check savings bonds, either purchased or redeemed.

But, do you sell Savings Bonds to non-customers? This might be a place for OFAC to come into play.

no, customers only...not worth the hassle for the minimal amount of money the treasury re-imburses for the bonds. We used to sell to non-customers, and those were always the ones with issues.

I thought you had to sell to all individuals - customers and non-customers - where did I miss that you could only sell to customers?

ditto... I even called the Kansas office on this and the answer was the same as above.

Well, I know that as a paying agent you have to redeem savings bonds for anyone that presents them. However, I could not specifically locate were you couldn't limit the sale of bonds to customers. If someone has a citation, I would love to know about it.