Skip to content

Checking OFAC List When Wiring Funds

Answered by: 

Question: 
Are banks required to search the OFAC lists on domestic banks when wiring funds?
Answer: 

As has been noted earlier, whether and what a bank checks against the OFAC list is a matter of risk management. There are types of transactions and types of persons that involve more risk of involving an OFAC-listed person that others. A domestic bank is a very low-risk person with regard to OFAC checking. Some banks might decide not to check domestic banks for that reason. However, the domestic bank's customer on such a wire is likely to present more OFAC risk, so that most banks check the beneficiary on outgoing wires and the originator on incoming wires. Many banks use OFAC filtering software or procedures in their wire transfer operations such that it is easy to check all parties to wire transfers -- including domestic banks.

First published on BankersOnline.com 10/08/07

First published on 10/08/2007

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