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#636539 - 11/09/06 09:45 PM OFAC non-customers cashing on-us checks ??
corkygirl Offline
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middle of the country
How is your bank handling the non-customer cashing an on-us check? Are you running OFAC on these non-customers? We do CIP (DL# etc) but have not been running an OFAC check.
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#636540 - 11/09/06 09:46 PM Re: OFAC non-customers cashing on-us checks ??
ACBbank Offline
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New York City
I guess this topic will never die. My FI OFACs everyone, every time.
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#636541 - 11/09/06 10:06 PM Re: OFAC non-customers cashing on-us checks ??
Bankerzrule Offline
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We do not OFAC check cashing transactions but do gather ID information.

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#636542 - 11/10/06 01:20 PM Re: OFAC non-customers cashing on-us checks ??
P*Q Offline

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We do an OFAC check on those trans. exceeding $500.

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#636543 - 11/10/06 01:58 PM Re: OFAC non-customers cashing on-us checks ??
rlcarey Online
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Galveston, TX
I have watched these debates go on for some time now in a number of different threads and about all I can add is that what you check and not check should be solely based on your internal OFAC risks assessment and the answer could be different for each institution. I think that all institutions checking everything is a waste of time and resources. If you are in a low risk area and have a low risk customer base, establishing systems for this process (unless absolutely seamless) is not a good deployment of resources.

The examiners that are out there touting the fact that everything has to be checked no matter what, do not understand either the law or regulations. They also do not understand the proper deployment of the risk assessment process that the regulators themselves have created. What is good for one bank is not good for all. What good or what is the reason for developing a risk assessment process if it always results in checking everything - every time????
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#636544 - 11/10/06 02:04 PM Re: OFAC non-customers cashing on-us checks ??
ACBbank Offline
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Quote:

I have watched these debates go on for some time now in a number of different threads and about all I can add is that what you check and not check should be solely based on your internal OFAC risks assessment and the answer could be different for each institution. I think that all institutions checking everything is a waste of time and resources. If you are in a low risk area and have a low risk customer base, establishing systems for this process (unless absolutely seamless) is not a good deployment of resources.

The examiners that are out there touting the fact that everything has to be checked no matter what, do not understand either the law or regulations. They also do not understand the proper deployment of the risk assessment process that the regulators themselves have created. What is good for one bank is not good for all. What good or what is the reason for developing a risk assessment process if it always results in checking everything - every time????




Valid point Randy, but nevertheless, they have their preconcieved ideas and/or beliefs about OFAC. My FI is very small, with almost no international business, yet we were told that we should be doing everyone, every time. Yes, I know it could be seen as a waste of resources as you indcated Randy, but in management's opinion, debating with the examiners is even a bigger waste of time and effort.
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#636545 - 11/10/06 02:17 PM Re: OFAC non-customers cashing on-us checks ??
rlcarey Online
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ACB,

I understand, but I have worked in both small and large organizations and I have always lived by the philosophy that the regulatory agencies are nothing but a partner with the bank to ensure that the bank is following the rules established by Congress and the other regulatory bodies. I have never found educating the examiners to be a waste of time and in many cases, when it came down to where the rubber meets the road, the fact that I did not roll over easily and that my arguments were always support by facts and that I was not afraid to challenge the field examiners always left them with higher respect for both myself and the organizations that I represented. In many cases it saved our skin when they thought there was a serious deficiency. I very seldom ignored the small battles thinking they were not worth fighting because in the long run they have a cumulative effect on the organization.

Additionally, sacrificing shareholder profit to appeased a field examiner has never been one of the line items in my job description.
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#636546 - 11/10/06 02:23 PM Re: OFAC non-customers cashing on-us checks ??
ACBbank Offline
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New York City
Quote:

ACB,

I understand, but I have worked in both small and large organizations and I have always lived by the philosophy that the regulatory agencies are nothing but a partner with the bank to ensure that the bank is following the rules established by Congress and the other regulatory bodies. I have never found educating the examiners to be a waste of time and in many cases, when it came down to where the rubber meets the road, the fact that I did not roll over easily and that my arguments were always support by facts and that I was not afraid to challenge the field examiners always left them with higher respect for both myself and the organizations that I represented. In many cases it saved our skin when they thought there was a serious deficiency. I very seldom ignored the small battles thinking they were not worth fighting because in the long run they have a cumulative effect on the organization.

Additionally, sacrificing shareholder profit to appeased a field examiner has never been one of the line items in my job description.




Randy, I would love to see you try and educate the examiners that I have been dealing with as of late. Especially the NYSBD. That in and of itself is a full time job. I had an easier time handling disputes with the NASD and SEC, then the NYSBD.

The shareholder profit issue would be hard for me to demonstrate to management as well. The OFAC checks we preform are free, and while I agree with you about the loss of time and/or resources, that is something I stopped preaching about months ago.
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#636547 - 11/10/06 08:33 PM Re: OFAC non-customers cashing on-us checks ??
Pinkie CRCM Offline
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KY
Quote:

the NYSBD




Doesn't that say a lot in itself? Aren't all of you guys under a microscope over there, with all the "top of the line" AML / BSA examiners, VS. the double, triple and quadruple hat wearing examiners (like mine)?

I understand ABC - you gotta pick your battles and this one isn't one of them, and I understand RL - there are some battles worth fighting for, esp. if they effect the bottom line. Interesting stuff to think about.

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#636548 - 11/10/06 09:48 PM Re: OFAC non-customers cashing on-us checks ??
ACBbank Offline
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Quote:

Quote:

the NYSBD




Doesn't that say a lot in itself? Aren't all of you guys under a microscope over there, with all the "top of the line" AML / BSA examiners, VS. the double, triple and quadruple hat wearing examiners (like mine)?

I understand ABC - you gotta pick your battles and this one isn't one of them, and I understand RL - there are some battles worth fighting for, esp. if they effect the bottom line. Interesting stuff to think about.




Pink, your statements are very accurate. The NYSBD in their infinite wisdom, have expectations that cannot possibly be met. I wont type out the laundry list of items, but I assure you, it is beyond practical. Its funny, b/c I read Randy's posts and how he is able to have a dialogue with his examiners and even educate them. I couldnt even imagine trying that with the NYSBD.
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#636549 - 11/10/06 09:57 PM Re: OFAC non-customers cashing on-us checks ??
rlcarey Online
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Then I would say that your State Banking Association is not doing their job and I would quit paying any dues to them
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#636550 - 11/10/06 10:02 PM Re: OFAC non-customers cashing on-us checks ??
ACBbank Offline
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Quote:

Then I would say that your State Banking Association is not doing their job and I would quit paying any dues to them




Now that is FUNNY!!!!
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