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#956105 - 05/08/08 05:16 PM OFAC scrubs and safe deposit boxes
Enigmatz Offline
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Joined: Apr 2003
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Can someone point me in the proper direction? Since 2003 I have been told by exmainers, consultants and auditors alike that when account records are not electronically searchable (let's use safe deposit box records as the example)that periodic OFAC scrubs are not necessary.. Has anyone else been told this and if so, where can I locate the written guidance?

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#956110 - 05/08/08 05:23 PM Re: OFAC scrubs and safe deposit boxes Enigmatz
CantBeShocked Offline
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Joined: Apr 2006
Posts: 260
MS
Our Safe Deposit box customer are in our CI file so they are scrubbed.
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#956240 - 05/08/08 07:46 PM Re: OFAC scrubs and safe deposit boxes CantBeShocked
WonderWoman Offline
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Joined: Mar 2007
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gone fishin'
*ditto* to Dixie ...

It is a "risk based" approach. If you don't search SDB customers, you must state why. Most banks do not offer SDB to non-customers, therefore they are protected with OFAC & 314(a) Searches.

The FFIEC Manual states:

Based on the banks OFAC risk profile for each area and available technology, the bank should establish policies, procedures, and processes for reviewing transactions and transaction parties (e.g., issuing bank, payee, endorser, or jurisdiction). Currently, OFAC provides guidance on transactions parties on checks. The guidance states if a bank knows or has reason to know that a transaction party on a check is an OFAC target, the banks processing of the transaction would expose the bank to liability, especially personally handled transactions in a high-risk area. For example, if a bank knows or has a reason to know that a check transaction involves an OFAC-prohibited party or country, OFAC would expect timely identification and appropriate action.

I would also review pg 142.
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