Topic: OFAC Checks
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We are a national bank, and we recently moved our wealth and farm management groups into a separate, state-chartered trust company that will be regulated by the IDFPR and the Federal Reserve. Which compliance regulations apply to a trust company? Do the following apply? BSA, OFAC, AML, CIP, USA Patriot Act, FACT Act, Elder Financial Abuse, UDAAP, and GLBA.
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Trust companies are subject to all the laws mentioned in your question. Broadly speaking, there are no exemptions for trust companies in the laws and regulations that generally apply to banks, bank holding companies, and their subsidiaries. Also, you mention in your question that the trust company will be regulated by the IDFPR and the…
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An individual from Argentina would like a business loan to purchase an office building here in the U.S. The loan would be secured by a mortgage on the building, as well as by some funds that will be wired to us from Argentina. Are there any BSA concerns with making a loan to such a customer?
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Before engaging in a transaction with a foreign national, your bank should first check the Office of Foreign Assets Control (OFAC) database to ensure that the individual and his business are not specially designated nationals that your bank would be prohibited from dealing with. In addition, the FFIEC’s BSA/AML Examination Manual includes a concise description…
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We outsource our credit card program. Although the cards have our bank logo on them and we provide the credit card applications, the applications are submitted directly to the vendor, and we have no access to account information. If a blocked person opens a credit card, are we liable for the OFAC violation? Are we liable for transactions that are processed through the credit cards?
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We do not believe that you would be held responsible for OFAC violations related to the credit card accounts issued by or transactions conducted through your third party credit card vendor, but it would be advisable to confirm this practice with your primary regulator. Of course, the scope of transactions covered by OFAC regulations is…