Scenerio:
You sell a Cashiers Check to your customer (OFAC check on your customer already taken care of through the CIF check), but the payee of the check is a positive hit to the the OFAC list. Because it would unlawful for us to proceed, how do you communicate to the customer that the transaction cannot be processed? Do we have the customer contact OFAC directly? If so, what telephone number and contact should we provide?

I would strongly suggest that you contact OFAC directly about this issue. Even though the hit was not on your customer, it appears that your customer may have a relationship with an SDN. You should contact the OFAC hotline at 1-800-540-6322. And oh yes, be patient because chances are you will get voice mail.

I would definitely seek guidance on this type situation. Depending upon the hit, you may be required to complete the transaction and then advise your customer that you must retain (i.e., freeze) the money. It could get ugly!

OK, I have another question along these same lines...

What if we get a hit (on, for example, a non-customer purchaser) after regular business hours (example: 5:45pm through our drive-thru, or on a Saturday morning)??

What the heck does the poor teller do then? Confiscate the cash being used to purchase the monetary instrument, tell the customer to come back during regular business hours (with some cockamamie excuse), or what?? Is the OFAC hotline a 24 hour line?

My sympathies to the haplass Carlos Gonzales who is selling his car in a private party transaction. If all you have is the name, Carlos Gonzales, do you have enough information to know that your customer is not buying a car from one of the many Carlos --- Gonzaleses on the OFAC list?

This is where the practical application of a far reaching law such as OFAC is problematic.

Perhaps it is time for a poll (and I'll try and remember to put in the Poll Stop this time...)

OFAC hits on Monetary Instruments
We have found a Positive Hit for OFAC on a Monetary Instrument
We have found a FALSE positive on a Monetary Instrument
We thought we had an OFAC hit, and after upsetting our customer, found out we were incorrect
We check payees names against OFAC, but haven't found any hits
Have no idea - as we aren't checking payee names (yet.)