01-22-2007
OFAC Scanning now available in achbusiness.com.
OFAC (Office of Foreign Assets Control) is the U.S. Treasury department responsible for blocking financial transactions with suspected terrorists. OFAC requires financial institutions to compare names on transactions contained within an ACH file to the published SDN list. The SDN list, lists those individuals who are restricted from doing business with U.S. companies and whose assets are frozen. If the financial institution find a match, the financial institution is required to stop doing business, freeze the money, and contact the Feds. SBT's software provides automated OFAC scanning with result reporting. The reports should be retained to provide evidence that the financial institutions are complying with the law. A financial institution failing to scan wires and ach transactions against the published SDN list puts the financial instituion at risk for punitive penalities.