Which of the following accurately describes the OFAC screening process?
A. Institutions are only required to screen new accounts and do not need to screen transactions.
B. Institutions must check all parties to a transaction, including beneficiaries, co-signers, and attorneys-in-fact.
C. Once an account is opened, institutions do not need to check it against updated lists.
D. Screening can only be done manually; institutions cannot use software.
Answer (2)
The OFAC screening process requires institutions to screen all parties involved in a transaction and to regularly update and check accounts against OFAC's sanction lists. Institutions cannot solely depend on manual screening and often use software to ensure compliance efficiently. Ensuring compliance with OFAC regulations is crucial for avoiding legal repercussions. ;
The OFAC screening process involves checking all parties to a transaction and regularly updating accounts against current sanctions lists. Institutions often use automated software to enhance compliance efficiency and accuracy. Therefore, the most accurate description is option B: Institutions must check all parties to a transaction, including beneficiaries, co-signers, and attorneys-in-fact.
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