Thread Options
#2080221 - 05/25/16 10:55 AM MSB's and OFAC
PrimeTime Offline
100 Club
PrimeTime
Joined: Nov 2014
Posts: 173
In discussion with a peer the issue of OFAC risk as it applies to MSB customers came up and I was hoping for some guidance.

If a check cashing MSB cashes a check payable to an individual listed on OFAC and then deposits that check with their financial institution, who would be "on the hook" for that OFAC violation; Assuming the two separate scenarios 1) that the MSB qualifies for and is registered with FINCEN and 2) does not qualify for and is not registered with FINCEN?

Further, in the same scenarios above, if the financial institution utilizes a correspondent bank for their cash letter, who would the violation fall on at that point?

Would the result be the same for an entity that processes wire transfer services as an agent of an MSB (ex. Convenience store that offers Western Union)?
_________________________
Life is like a bicycle. To keep your balance, you must keep moving.
-Albert Einstein

CAMS

Return to Top
BSA/AML/CIP/OFAC Forum
#2080240 - 05/25/16 12:56 PM Re: MSB's and OFAC PrimeTime
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,296
Cape Cod
The status of the MSB as registered or unregistered with FinCEN is irrelevant. It has nothing to do with OFAC rules.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2081232 - 06/01/16 01:20 PM Re: MSB's and OFAC John Burnett
gcg Offline
100 Club
Joined: Mar 2007
Posts: 126
I still would like to know who is in violation when a customer cashes a check for someone on the OFAC list and then includes it in a deposit to our bank.

Return to Top
#2081260 - 06/01/16 02:10 PM Re: MSB's and OFAC PrimeTime
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,296
Cape Cod
The customer, since the customer is the party that transacted business with the OFAC-designee. Your bank has no ability to change that fact.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2081410 - 06/01/16 08:54 PM Re: MSB's and OFAC John Burnett
gcg Offline
100 Club
Joined: Mar 2007
Posts: 126
Thank you!

Return to Top

Moderator:  Andy_Z