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#2012119 - 05/05/15 04:51 PM IATS and OFAC
Trees Offline
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Joined: Apr 2005
Posts: 4,013
We receive these only. We do not originate IATs.
We use a vendor for OFAC and get a daily report.
If you are like us, do you place an automatic hold on these as well, until you have had a chance to review the reports?

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#2012298 - 05/06/15 12:37 PM Re: IATS and OFAC Trees
HappyGilmore Offline
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Joined: Jun 2004
Posts: 19,335
Pulling people out of the ditc...
our OFAC scan is real time, no hold unless a suspect item and then our review process begins
Providing alternative truths since the invention of time

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#2012311 - 05/06/15 01:01 PM Re: IATS and OFAC Trees
P*Q Offline

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Joined: May 2001
Posts: 8,439
Yes, we place a hold on those transactions (our core processor does) until compliance dept. reviews the items and gives the go ahead to process them.

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#2012431 - 05/06/15 04:58 PM Re: IATS and OFAC Trees
CULady Offline
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Joined: Sep 2007
Posts: 493
Our core processor kicks out the IAT transactions until someone marks them to be reposted. Once they have been manually OFAC'd then we change them to repost.
Last edited by CULady; 05/06/15 05:03 PM. Reason: Typo
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#2012439 - 05/06/15 05:06 PM Re: IATS and OFAC Trees
charlied Offline
Joined: Oct 2009
Posts: 94
The issue you will run into if you place an automatic hold on IATs (unless your OFAC scan is performed AND reviewed in real time) is that you could be in violation of NACHA posting requirements. This is something we ran into at my previous bank. We had to do a lot to manhandle the system into allowing us to review OFAC scans in real time so that we would not be violating NACHA rules.

Also, if you have a vendor scanning your IATs against OFAC, make sure they are scanning all the required addenda. We have found that very often vendors and processors really don't fully understand their own scanning process.

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#2012474 - 05/06/15 06:00 PM Re: IATS and OFAC Trees
PrimeTime Offline
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Joined: Nov 2014
Posts: 173
For those banks that ARE placing a hold/manually OFAC'ing, how many of these you're manually reviewing on an average day? Just trying to gauge where we stand as far as how feasible it is to do something of that nature as opposed to the automatic OFAC scan in real time through a vendor.
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