Our country is extremely concerned with eliminating terrorist threats and OFAC regulations demonstrate that. One major problem area is the funding of terrorist activities through our financial institutions. OFAC regulations address this problem and strive to halt or impede terrorism. The Office of Foreign Assets Control is part of the U.S. Department of the Treasury. Cooperation is required, with penalties in place for violations.

Review of OFAC Regulations

OFAC publishes and distributes two watch lists. The SDN List has names and descriptions of individuals identified as posing a threat to security of the United States. Financial institutions are required to maintain a customer database and check it against the SDN List for matches. If a match is detected, it must be reported immediately. New lists arrive bi-weekly which must be checked promptly.

The OFAC Blocked Countries List alerts businesses to the possibility that they may be participating in commerce activity with blocked countries. The list details guidelines for each country such as trade embargoes and other financial restrictions. OFAC regulations require regular screening of this list.

Manual compliance is time-consuming and inefficient. Many businesses and financial institutions choose an automated program to assure that OFAC regulations are addressed. Computer software solutions are widely available. Make sure that the chosen program screens on an individual basis as well as batch file checking. Free training should be included and the software should have the ability to screen all government lists, such as FBI lists and Denied Persons List.