The bank chooses to only be an ODFI for a select few business customers and those transactions are reviewed from an OFAC perspective daily.
I am in the process of the bank's first ever alert threshold review. IAT's are a source of one of largest generating alerts. These are ALL originated through Paypal, most likely via Amazon/Ebay. Correct me if I am wrong here, the ODFI here is Paypal/Paypal's bank, and not our bank. Reviewing these alerts is entirely fruitless. We have never generated a case off of these alerts and the a large number of the names are of Asian decent with 6-10 various surnames which are impossible to match/clear even if we tried. They are also usually less than $100. I believe I can justify removing this alert all together over time, but want to start by at least upping the dollar threshhold.
Can someone just confirm for me that, as the RDFI, from a BSA perspective, these alerts are generally useless? I guess it's possible Paypal would generate an IAT to a sanctioned individual or country, but we would never have access to that information to be able to clear an alert, all we have is Paypal and a Name. How do you guys handle this?