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Running OFAC on Loans

Answered by: 
John Burnett

Question: 
When should lenders order OFAC on loans? We are running them twice, once when the application is received (why go through the process if we get a hit) and once again after docs are ordered and before the loan is booked. Is there any standard we should adhere to?
Answer: 

It certainly makes sense to run a check at application time, for the reason you've given. Depending on the interval between application and closing, a second check at closing may be wise. Once you've disbursed the funds, you've pretty much exhausted your chances to prevent a violation.

First published on BankersOnline.com 9/03/07

First published on 09/03/2007

Filed under: 
Security
Filed under security as: 
IT
Loans
OFAC

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