Skip to content

Checking The OFAC List, Official Checks, And Payees

Answered by: 

We are having a discussion regarding OFAC and the checking names of payees for cashiers checks. One person believes all names must be checked, purchaser status customer and noncustomer. The second opinion is: names of payees for cashiers checks purchased by noncustomer only are to be checked. Who is correct?

From the Q & A on the OFAC web site: Does my bank need to check the OFAC list when selling cashier's checks and money orders? In the case of cashier's checks, do I need to check both the purchaser and the payee? As a mortgage lender, do I need to check both the purchaser and the seller's name against the SDN list?

Every transaction that a U.S. financial institution engages in is subject to OFAC regulations. If a bank knows or has reason to know that a target is party to a transaction, the bank's processing of the transaction would be unlawful. [091002]

From Ken: In pure "governmentese," I think it says you need to check both. If you only sell official checks to accountholders you dramatically reduce, but do not eliminate, your concerns over checking the remitter.

First published on 2/3/03

First published on 02/03/2003

Filed under: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics