Your institution has identified a transaction by an existing depositor that should be blocked under OFAC requirements. The branch manager contacts you for specific instructions. Before reporting the transaction to OFAC, what should the bank do?
Your institution has identified a transaction by an existing depositor that should be blocked under OFAC requirements. The branch manager contacts you for specific instructions. Before reporting the transaction to OFAC, what should the bank do?
When a transaction is identified that should be blocked under OFAC (Office of Foreign Assets Control) requirements, the bank must place the funds in an interest-bearing account. This approach helps to comply with OFAC regulations by ensuring the funds are not moved while still maintaining them in a secure and financially viable manner until further instructions from OFAC are provided.
When an institution identifies a transaction that should be blocked under OFAC (Office of Foreign Assets Control) requirements, the appropriate action is to reject the transaction. Blocking the transaction means preventing it from being processed or completed. This action is necessary to ensure compliance with OFAC regulations and to prevent the movement of funds to sanctioned individuals, entities, or countries. Options B, C, and D would not address the requirement to block the transaction under OFAC regulations. Instead, they could potentially lead to non-compliance or further exposure to risk.