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#1641390 - 12/20/11 11:00 PM Safe Deposit Box - OFAC Check for non-customers
SuperHeroCapeReq Offline
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Joined: Aug 2010
Posts: 15
Hello and Happy Holidays!

We allow non-members (non-customers) to be a signer on Safe Deposit Boxes. In doing so, becuase we are providing a service to that non-customer, I believe we are required to perform an OFAC check against that individual. Is this correct? If so, how are you currently documenting this OFAC check, and are you running these non-customers against OFAC on a regular basis?

You input is very appreciated! Thank you!!

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#1641401 - 12/21/11 12:28 AM Re: Safe Deposit Box - OFAC Check for non-customers SuperHeroCapeReq
WonderWoman Offline
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WonderWoman
Joined: Mar 2007
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gone fishin'
All safe deposit box owners (customers or non-customers) are entered into our core system, therefore automatically being run against OFAC every night.
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#1641402 - 12/21/11 12:34 AM Re: Safe Deposit Box - OFAC Check for non-customers WonderWoman
SuperHeroCapeReq Offline
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"(customers or non-customers) are entered into our core system"

In a perfect world that would be great, unfortunately at this time we do not have that capability.

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#1641418 - 12/21/11 11:30 AM Re: Safe Deposit Box - OFAC Check for non-customers SuperHeroCapeReq
rlcarey Online
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rlcarey
Joined: Jul 2001
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Galveston, TX
You don't have the capacity to create a CIF file for the individual? Normally, just because you don't have provisions to add a safe deposit product to the customer record does not mean you can't get them on your CIF system.
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#1641427 - 12/21/11 12:05 PM Re: Safe Deposit Box - OFAC Check for non-customers SuperHeroCapeReq
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
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Next to Harvey
Quote:
I believe we are required to perform an OFAC check against that individual. Is this correct?


No. You're not required to run an OFAC check on anyone; it's a risk based decision. I can think of no rationale that would support a decision that a deputy on a safe deposit box represents a lower risk of an OFAC violation than a renter might; i.e. if you check for renters you would logically check for deputies.
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#1641563 - 12/21/11 02:57 PM Re: Safe Deposit Box - OFAC Check for non-customers SuperHeroCapeReq
BFrame Offline
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BFrame
Joined: Nov 2011
Posts: 402
USA
We are able to create a new CIF for someone even if they are not an owner on the account (or safe box) - as rlcarey mentioned above.
And as Ken_Pegasus mentioned, if you're OFAC checking a box owner why would you not OFAC check someone else authorized to enter the box?

To your question, SuperHeroCapReq, how are we documenting this OFAC check?
We have a new account checklist for all accounts with a box to check if we completed the OFAC check on all signers on the account we opened. We also print out the OFAC results of the person we checked. These results are scanned to the account number in a document imaging program we have. Then of course, our entire customer database is regularly scanned for OFAC hits & we check the 314(a) lists that come out.
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#1641750 - 12/21/11 04:38 PM Re: Safe Deposit Box - OFAC Check for non-customers SuperHeroCapeReq
Just Jean Offline
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Joined: Feb 2002
Posts: 582
USA
When you are providing safe deposit services to non-customers (members) are you not in fact making them a customer/member? You are creating an on-going relationship which makes them a customer/member by Patriot Act standards. To my way of thinking, creating this relationship would cause you to have CIP obligations by law and OFAC screening by policy.

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