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#2204128 - 01/28/19 04:38 PM MSB and Failed OFAC
JennKK2 Offline
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potential customer a LLC comes in wants to open account not from our community and they business name appears on the OFAC list as Failed but shows they are a registered as an MSB can you be a failed OFAC and Registered MSB ....we utilize a third party vendor for our OFAC searches.
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#2204131 - 01/28/19 04:54 PM Re: MSB and Failed OFAC JennKK2
rlcarey Online
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MSB registration is just that - like filing for an assumed name certificate - nobody checks anything. You most likely have a false positive anyway.
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#2204138 - 01/28/19 05:16 PM Re: MSB and Failed OFAC JennKK2
HappyGilmore Offline
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Pulling people out of the ditc...
i don't know what "on the OFAC list as Failed" means.

you should be asking yourself why a MSB with no ties to your community would go out of their way to select your bank as where they want to transact business. are there no banks where they operate their business? of course there are. so, why yours?
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#2204150 - 01/28/19 05:49 PM Re: MSB and Failed OFAC JennKK2
JennKK2 Offline
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ok. they did have all their paper work, including the MSB registration , however we chose not to open the account.
thank you
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#2204158 - 01/28/19 06:27 PM Re: MSB and Failed OFAC JennKK2
JennKK2 Offline
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@HappyGIlmore
yes the new accounts person did an outstanding job of holding a casual conversation inquiring as to their business, the business, activities, and why they would come to us when there are clearly other banks where the business is located.
our OFAC search came up as FAILED. granted an FI doesn't have to deny an account opening based on that but it clearly was a red flag. they had their BSA policy in hand too. they indicated they had a 12 year relationship with their former bank but after a buy out were told they were no longer going to be banked. I feel they did have all their ducks in a row. we simply are not set up with personnel or resources to have handled this type of customer.
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#2204197 - 01/28/19 09:26 PM Re: MSB and Failed OFAC JennKK2
HappyGilmore Offline
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Pulling people out of the ditc...
what do you mean by the ofac search came up as failed? do you mean they were not on the ofac list? that they were on the ofac list? that there was a false-positive match to ofac?
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#2204226 - 01/29/19 04:25 AM Re: MSB and Failed OFAC JennKK2
JacF Offline

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If JennKK2 is using the third party system that I suspect she is using, it returns OFAC results in Pass/Fail format:
Pass= No Match
Fail= Potential Match (then you review the matches for false positives)

This system also happens to run every list in its repertoire through this singular search function, so potential matches that have nothing to do with OFAC (FI fraud, domestic PEPs, etc.) also generate "Fails" under the OFAC heading.

If it sounds like something that could thoroughly confuse the typical banker, then you're tracking with me...

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#2204290 - 01/29/19 05:55 PM Re: MSB and Failed OFAC JennKK2
JennKK2 Offline
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@HappyGilmore -and @JacPCB
yes the results indicate a "pass" or a "fail', with options to override.
it was a FAIL and listed multiple listed searched.
it indicated they were an MSB, but other than my entity having an LLC at the end of the titling, there were no other differences.
I did not override. I left as a fail.
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#2204358 - 01/29/19 10:02 PM Re: MSB and Failed OFAC JennKK2
JacF Offline

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Jenn-

The system is using the OFAC search function to search for hits on the MSB registry (and other lists) in addition to OFAC. Your search returned a match (Fail) because of the name's inclusion on the MSB list. If you look at the details of the search results, you should see only this reference, and not any potential matches to the OFAC/SDN list.

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#2204370 - 01/29/19 11:46 PM Re: MSB and Failed OFAC JennKK2
Buddy the Elf Offline
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I think the distinction between a potential OFAC/SDN match versus other lists cannot be understated. It is imperative to review the potential match and determine precisely what list it is hitting on. If this is nothing to do with OFAC, the steps taken are very different than if it were truly an OFAC hit. I can't imagine that incorrectly reporting an OFAC hit would be looked upon in a very good light to OFAC or an examiner. If you can't determine the difference between an OFAC/SDN match and another list, what other "BSA things" are being misunderstood?
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