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Question 249

FA presents cash to the bank and seeks to wire it to his spouse, RA, in Cub A. The OFAC list identifies RA as a specially designated national. Under OFAC

Regulations, what should the bank do?

    Correct Answer: A

    If an individual is identified as a specially designated national (SDN) by the Office of Foreign Assets Control (OFAC), then any transactions involving that individual are prohibited. The bank is required to block the transfer in order to comply with OFAC regulations. Conducting the transfer would violate sanctions and could result in penalties for the bank. Therefore, the appropriate action is to block the transfer to RA in Cuba.

Discussion
Cam22Option: A

If RA is identified as a specially designated national by the Office of Foreign Assets Control (OFAC), the bank is required to block the transfer. OFAC regulations prohibit transactions involving individuals or entities listed on the SDN list. Therefore, the bank must prevent the funds from being transferred to RA in Cuba to ensure compliance with OFAC regulations and avoid facilitating transactions with sanctioned parties.