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#1763006 - 11/30/12 07:42 PM OFAC for Authorized Signers
Anonymous
Unregistered

I am part of a publicly traded company that manages over 1,000 DDA accounts at over 250 banks in the US. For various reasons we are re-organizing our bank accounts to fit a new operating model. In some cases we are opening new accounts with existing banks and in other cases we are beginning new banking relationships. In many cases we are being asked to provide the SS# and driver's license information for the authorized signers on the business accounts we're opening. I am completely in tune with the banks need to comply with the BSA and with their own internal CIP policies. However, we also have a responsibility to our employees to protect their personal information. In most cases, we are able to supply certain organizational documents that allow a bank to waive the requested personal documents/information from our employees. I have one bank that insists that OFAC rules require the bank to obtain the driver's license of our employees to run an OFAC check. I can find nothing that provides any guidance to us on the actual OFAC requirements for corporations, publicly traded companies, etc. I suspect the requirement the bank is referencing is part of the bank's internal OFAC Program but it is not specifically required as part of the reg. Can anyone direct me to any guidance on this topic? Thanks in advance.

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#1763040 - 11/30/12 08:15 PM Re: OFAC for Authorized Signers Anonymous
edAudit Online
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edAudit
Joined: Jul 2008
Posts: 4,771
You are here
Are you sure that they are part of an OFAC requirement or Patriot Act?


But if it is OFAC it could be part of

OFAC Compliance Program
While not required by specific regulation, but as a matter of sound banking practice and in order to ensure compliance, banks should establish and maintain an effective, written OFAC compliance program commensurate with their OFAC risk profile (based on products, services, customers, and geographic locations). The program should identify higher-risk areas, provide for appropriate internal controls for screening and reporting, establish independent testing for compliance, designate a bank employee or employees as responsible for OFAC compliance, and create training programs for appropriate personnel in all relevant areas of the bank. A bank’s OFAC compliance program should be commensurate with its respective OFAC risk profile.

http://www.ffiec.gov/bsa_aml_infobase/pages_manual/olm_037.htm
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#1763048 - 11/30/12 08:28 PM Re: OFAC for Authorized Signers edAudit
Anonymous
Unregistered

Thank you for posting that information. I did read that but it doesn't spefically deal with my situation. Banks typically ask for ss# and driver's license as part of their CIP under the Patriot Act even though the information is not required by the reg as we are a publicly traded company. Their internal CIP asks for information that isn't required under the reg which causes us a bit of a problem. The particular bank we're working with has satisfied itself for the Patriot Act requirements but is still insisting that a driver's license is required for authorized signers so they can run an OFAC check. If that is required under the reg I want to go back to our board and tell them it's required and there's nothing we can do about it. However, I can't substantiate that the drivers license is required for the authorized signers.

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#1763050 - 11/30/12 08:33 PM Re: OFAC for Authorized Signers Anonymous
straw Offline
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straw
Joined: Nov 2002
Posts: 9,121
OFAC doesn't require anything. OFAC simply says a financial institution cannot allow transactions on accounts controlled by blocked persons/entities. As Edaudit quoted, it is up to each FI to develop an effective, written OFAC complianc program commensurate with their OFAC risk profile.

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#1763094 - 11/30/12 09:23 PM Re: OFAC for Authorized Signers straw
Anonymous
Unregistered

Thank both of you very much. This is the information I needed.

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#1763252 - 12/03/12 02:54 PM Re: OFAC for Authorized Signers Anonymous
E.E.G.B Offline
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E.E.G.B
Joined: Jul 2002
Posts: 6,726
the sandy shore
Be aware, though, that some banks are being criticized by their regulators for not OFACing authorized signers, which could be driving why they are asking for more information.
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