OFAC scrubs and safe deposit boxes

Posted By: Enigmatz

OFAC scrubs and safe deposit boxes - 05/08/08 05:16 PM

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?
Posted By: CantBeShocked

Re: OFAC scrubs and safe deposit boxes - 05/08/08 05:23 PM

Our Safe Deposit box customer are in our CI file so they are scrubbed.
Posted By: WonderWoman

Re: OFAC scrubs and safe deposit boxes - 05/08/08 07:46 PM

*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 bank’s 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 bank’s 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.