Thread Options
#2097008 - 09/06/16 05:07 PM OFAC Non-customer check cashing
Livin' the Dream Offline
Junior Member
Joined: Feb 2015
Posts: 27
Up a creek...
We have recently had an audit finding because we are not running OFAC on non-customers cashing checks. In the past we have decided to accept the risk on this, and will likely continue with that approach, however, I have been asked for the practice of my peers before we finalize that decision. This being said, is anyone willing to share their practice in regards to OFAC and non-customer check cashing...I'd greatly appreciate it.
Thank you!

Return to Top
BSA/AML/CIP/OFAC Forum
#2097009 - 09/06/16 05:10 PM Re: OFAC Non-customer check cashing Livin' the Dream
Sunshine Lady Offline
Platinum Poster
Sunshine Lady
Joined: Apr 2014
Posts: 588
We also do not OFAC non-customer cashing check and have accepted the risk and added it to our BSA/AML policy. We have never been criticized for our procedures.
_________________________
Define Success on your own terms, achieve it by your own rules, and build a life you are proud of. Anne Sweeney

Return to Top
#2097010 - 09/06/16 05:33 PM Re: OFAC Non-customer check cashing Livin' the Dream
Jennifer Offline
100 Club
Jennifer
Joined: Dec 2014
Posts: 164
We DO check non-customers prior to check cashing (Jack Henry & Associates processor). The tellers can usually do a quick OFAC check in accordance with our procedures very quickly.

Return to Top
#2097031 - 09/06/16 06:23 PM Re: OFAC Non-customer check cashing Livin' the Dream
RockChucker, CAMS Offline
Diamond Poster
Joined: Jul 2013
Posts: 1,569
The Country
We only check OFAC on non-customers over a certain $$ amount. It is a risk decision that must be tailored to your institution.
_________________________
A successful man is one who can lay a firm foundation with the bricks others have thrown at him.
-David Brinkley

Return to Top
#2097043 - 09/06/16 06:39 PM Re: OFAC Non-customer check cashing RockChucker, CAMS
Amandak Offline
Member
Joined: Jul 2013
Posts: 80
Wisconsin
Originally Posted By RockChucker
We only check OFAC on non-customers over a certain $$ amount. It is a risk decision that must be tailored to your institution.


Same here.

Return to Top
#2097060 - 09/06/16 07:14 PM Re: OFAC Non-customer check cashing Livin' the Dream
Beachbum, CRCM Offline
Gold Star
Joined: Dec 2006
Posts: 480
Knee Deep in Regs
We also check OFAC for non-customer check payees at the teller line.
We were written-up for not having this procedure in place by our examiners last year.
_________________________
What we think, we become.
Buddha

Return to Top
#2097062 - 09/06/16 07:16 PM Re: OFAC Non-customer check cashing Livin' the Dream
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,277
Galveston, TX
We were written-up for not having this procedure in place by our examiners last year.

It was in your report of examination? Really? Didn't you already cover this in your OFAC risk assessment? They criticized that too then I suppose?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2097064 - 09/06/16 07:17 PM Re: OFAC Non-customer check cashing Livin' the Dream
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Checking non customers, but only over a certain dollar amount is a tad cynical, but it works as a sop for some examiners. (Risk isn't strictly limited by the amount of the check, but checking over the counter payees is a ridiculous passtime either way.)
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#2097072 - 09/06/16 07:30 PM Re: OFAC Non-customer check cashing Livin' the Dream
Beachbum, CRCM Offline
Gold Star
Joined: Dec 2006
Posts: 480
Knee Deep in Regs
rlcarey- yes, we were told to add it to our OFAC risk assessment.
_________________________
What we think, we become.
Buddha

Return to Top
#2097096 - 09/06/16 08:14 PM Re: OFAC Non-customer check cashing Livin' the Dream
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,277
Galveston, TX
Being told something by an examiner and written-up is too very different things. It would never make it to the report, as there is no basis of a regulatory violation for them to cite. It was just one examiner's opinion at this point. Addressing it in your risk assessment is another issue. I would and say the risk is so low, we deem it not necessary to check.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2097104 - 09/06/16 08:19 PM Re: OFAC Non-customer check cashing Livin' the Dream
Beachbum, CRCM Offline
Gold Star
Joined: Dec 2006
Posts: 480
Knee Deep in Regs
My apologizing for being vague when I said "we were told". It was included in the final report.
_________________________
What we think, we become.
Buddha

Return to Top
#2097105 - 09/06/16 08:20 PM Re: OFAC Non-customer check cashing Livin' the Dream
Beachbum, CRCM Offline
Gold Star
Joined: Dec 2006
Posts: 480
Knee Deep in Regs
lol, long day. I meant "apologies"
_________________________
What we think, we become.
Buddha

Return to Top
#2097109 - 09/06/16 08:23 PM Re: OFAC Non-customer check cashing Livin' the Dream
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,277
Galveston, TX
Then I would have been calling my ombudsman because something that does not rise to the level of a violation of law should not be in a written report.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2097140 - 09/06/16 10:57 PM Re: OFAC Non-customer check cashing rlcarey
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
rlcarey is correct, but I dealt with a bank last week where it was in their written report and it focused on their insurance subsidiary. They were directed to run OFAC checks on the policy holder and the beneficiary on an ongoing basis. (That's an indicia of pure ignorance.)

OFAC compliance is risk based; it simply isn't up to the regulator to give directions on this point. Their role is limited to pointing out the deficiency in the risk assessment. However, if the bank is not willing to contest the finding...
_________________________
In this world you must be oh so smart or oh so pleasant. Well, for years I was smart. I recommend pleasant.

Return to Top
#2097332 - 09/07/16 07:59 PM Re: OFAC Non-customer check cashing Livin' the Dream
Little Miss BSA Offline
Diamond Poster
Little Miss BSA
Joined: May 2007
Posts: 1,185
Miami
We just had auditors here and they spent the good part of two weeks just reviewing OFAC and the last exam they also really heavily looked at ALL aspects of OFAC so I am guessing that OFAC is a hot button or hotter button these days LOL . To answer the original question yes WE DO OFAC non customers for OFAC for a specific threshold at the line.
_________________________
"Never allow someone to be your priority while allowing yourself to be their option!"

Return to Top
#2097418 - 09/08/16 01:55 PM Re: OFAC Non-customer check cashing Livin' the Dream
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,277
Galveston, TX
"We just had auditors here and they spent the good part of two weeks just reviewing OFAC."

If these are external auditors hired by your bank or internal auditors, they are wasting your money. Someone needs to have a talk with them unless for some reason you are a very high risk OFAC institution.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top

Moderator:  Andy_Z