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#134079 - 11/25/03 04:20 PM OFAC & ACH
Countess Kiwi Offline
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Minnesota
Does anyone include OFAC testing in their ACH audit? I have completed our ACH audit, but it just occurred to me that I didn't mention anything regarding us checking originator files with OFAC. We will hit this on our BSA combined audit, but does anyone include this in both areas?
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#134080 - 11/25/03 05:30 PM Re: OFAC & ACH
Risk Officer Offline
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Posts: 205
Dallas
As long as it is tested under one of the audits (at an appropriate interval) you should be fine. No need to test under multiple audits unless you feel the risk justifies it.
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#134081 - 11/25/03 09:43 PM Re: OFAC & ACH
Geaux Tigers - PL Offline
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Texas
I agree with the prior post, but I will add that you definitely need to make sure they have included reviewing OFAC information as part of their ACH procedures.

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#134082 - 11/25/03 09:47 PM Re: OFAC & ACH
Risk Officer Offline
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Dallas
BSA / OFAC / CIP / etc. are definitely hot topics with the examiners (Fed) and they got us for lack of OFAC checking in the ACH area...
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#134083 - 11/25/03 09:53 PM Re: OFAC & ACH
Countess Kiwi Offline
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Minnesota
That is what I am afraid of. I have added the comment to the ACH audit just to make sure I cover my basis...maybe with any luck they will have it fixed by the time we get the BSA,etc. one done.
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#134084 - 11/25/03 09:54 PM Re: OFAC & ACH
Geaux Tigers - PL Offline
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Geaux Tigers - PL
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Texas
We certainly recommend making sure all of our clients have it in their procedures.

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#134085 - 11/26/03 02:55 PM Re: OFAC & ACH
Jokerman Offline
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Quote:

. . . I didn't mention anything regarding us checking originator files with OFAC. . .




Are you suggesting that the bank is responsible for verifying that every recipient is not a blocked person/entity? My understanding was that the bank had to ensure that the originator was aware of and took responsibility for OFAC compliance. Do you review every check that a customer writes or deposits to ensure that it is not to or from a blocked person?

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#134086 - 11/26/03 03:08 PM Re: OFAC & ACH
Countess Kiwi Offline
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Joined: Jun 2002
Posts: 1,815
Minnesota
I was talking about those files that we send out to other banks as the originating depository fin. institution. Our agreements with originators do state they will follow US Laws, but not sure they have been told specifically to check the names against the OFAC listing. I do believe it would fall back to the bank, not the company we are originating for, if one went through that was ultimately on the OFAC listing.

No, we don't check every check that goes through, but we do check every customer as well as every wire and I think you need to have procedures for ACH as well.
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Do what you can, with what you have, where you are.
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#134087 - 11/26/03 04:51 PM Re: OFAC & ACH
RandomName Offline
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Posts: 1,373
Austin, TX
For what it's worth, here are the NACHA guidelines.

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