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#595945 - 08/09/06 09:17 PM
regulators are here and I have a problem with OFAC
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Junior Member
Joined: Apr 2003
Posts: 43
illinois
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Here is the scoop. Is there any substantial information I get find that addresses the fact that we should or should not check incoming wire transfer originators against the OFAC list? I know the regulation states that banks must not do business with any entity on the OFAC list SO it could be inferred that we must check incoming wire transfer originators in addition to the originating bank checking their customer (who would be the originator). If that is the case my management wants proof that that is the intention of the regulation for us to check not only our customer's but the originators of incoming wires as well.
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#595948 - 08/09/06 09:44 PM
Re: regulators are here and I have a problem with
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Power Poster
Joined: Mar 2005
Posts: 6,298
San Diego, CA
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The OCC has told me several times recently to check (as a best practice and to avoid penalty) the originators on incoming wires and the payees/remitters on cashier's checks. They have also told me to start checking our A/P vendors on a regular basis or before we issue any funds.
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Dabbling in banking, law, accounting...the life of a trustee.
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#595949 - 08/09/06 09:53 PM
Re: regulators are here and I have a problem with
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100 Club
Joined: May 2005
Posts: 128
California
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It's all risk based as stated above, while we do not check our CC's and those type of transactions, we do check everything on wires and all our customers. There is some decent software out there that can help you with this.
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The trouble with real life is that there is no danger music.
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#595950 - 08/09/06 10:58 PM
Re: regulators are here and I have a problem with
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10K Club
Joined: Jun 2005
Posts: 10,395
Jersey Shore
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Quote:
Here is the scoop. ... I know the regulation states that banks must not do business with any entity on the OFAC list SO it could be inferred that we must check incoming wire transfer originators in addition to the originating bank checking their customer (who would be the originator). If that is the case my management wants proof that that is the intention of the regulation for us to check not only our customer's but the originators of incoming wires as well.
First of all, I echo BonnieM's question about the rock!
Second, get thee to Treasury's OFAC website and download the text of the original executive order. Show it to management, and the bank's attorney. It pretty much lays out the who and the what of "do not do business with...".
In fact, if reading it doesn't make you immediately want to check your cleaning crew, copier repair-person and the guy that sell you coffee in addition to the originating party and bank on wires, well, read it again....
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#595954 - 08/10/06 01:54 PM
Re: regulators are here and I have a problem with
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Platinum Poster
Joined: Aug 2002
Posts: 554
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I guess I am missing some of the logic of checking payees on Cashier's Checks. If we only sell CCs to customers (that have gone through regular OFAC scans) why should we only care about CCs? If are customers are going to sent Uncle Bin $5,000 why not just write him a check from their checking account. To prevent this, should we be checking every check that is written out of our checking accounts to look for possible matches? Our customer is not going to ask a teller to make a CC to Uncle Bin because it would raise the profile of the event. Or conversely, should we be running every single deposited item to an account through an OFAC scan? (Uncle Bin sent our customer $1,000 for his birthday). So far our examiners have not suggested we review CCs, but when they do I am not going to ask why?, but when? "If you want CCs checked then when are we to start checking OFAC for All checks being written by our customers and when are we to start checking OFAC for All deposited items?"
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#595955 - 08/10/06 02:02 PM
Re: regulators are here and I have a problem with
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10K Club
Joined: Sep 2002
Posts: 13,965
TN
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A bank would have a violation of a customer wrote a check out of their account payable to an entity on the OFAC list. The bank is charged with determining how much risk it is willing to take and I can't imagine any bank checking all inclearing items. The cost/benefit would be so far in the negative.
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#595958 - 08/10/06 04:46 PM
Re: regulators are here and I have a problem with
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Power Poster
Joined: Apr 2003
Posts: 3,003
Fort Lauderdale, Florida
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For the others that read AML and went Huh? Like I did.... Haiku is a mode of Japanese poetry, the late 19th century revision by Masaoka Shiki of the older hokku, the opening verse of a linked verse form, haikai no renga. A traditional hokku consists of a pattern of approximately 5, 7, and 5 morae, phonetic units which only partially correspond to the syllables of languages such as English. It also contains a special season word (the kigo) descriptive of the season in which the renga is set. Hokku often combine two (or rarely, three) different elements into a unified sensory impression, with a major grammatical break (kire) usually at the end of either the first five or second seven morae. These elements of the older hokku are considered by many to be essential to haiku as well, although not always included by modern writers of Japanese "free-form haiku" and of non-Japanese haiku.
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