OFAC
Your institution must retain engaged transaction records for at least ____ year(s).
5 yrs
An account block can be overridden when funds are needed for a:
An account block may not be overridden without a license from OFAC
If your institution identifies a match to an entity on the OFAC SDN list, your institution must either ____________ or ___________ the transaction.
Block / freeze
OFAC can impose sanctions against:
Countries Companies Individuals *All of the above*
Institutions that are very small or located in rural areas do not have to worry about OFAC regulations.
F
OFAC is responsible for monitoring banking accounts and transactions.
F
OFAC sanctions may be imposed against individual accounts only.
F
The FSE and SSI lists replace the SDN list.
F
The majority of OFAC fines have been issued for institutions':
Failure to block illicit transfers
The majority of OFAC fines result from institutions':
Failure to block illicit transfers when there was a reference to a targeted country or SDN
Institutions that must comply with OFAC regulations include a(n):
Investment bank affiliated with your institution Small community bank with no international exposure Large institution with international exposure *All of the above*
Your institution must retain a record of all ________ transactions it engages in and are subject to OFAC regulations.
Licensed
Your institution must check any __________ against the OFAC list before any transaction is initiated.
Non-U.S. citizen attempting to conduct a transaction Party who does not have an existing account with your institution Foreign company attempting to conduct a transaction *All of the above*
OFAC requires your institution to reject certain transactions or refuse to do business with sanctioned parties or anyone on the SDN list. In these cases, transactions are usually:
Rejected Cancelled Returned to the sending institution *All of the above*
The OFAC list of entities and individuals that are prohibited from engaging in transactions with the U.S. is called the:
Specially Designated Nationals and Blocked Persons (SDN) list
Financial institutions have a major role in implementing OFAC sanctions.
T
OFAC's sound practices include written policies and operational procedures.
T
The FSE List and SSI List are not part of the SDN list, but individuals and companies on these lists may also appear on the SDN list.
T
The majority of OFAC violations have resulted from financial institutions' failure to block illicit transfers when there was a reference to a targeted country or SDN.
T
Your institution is required to file an annual-report of blocked property.
T
Your institution may use software to identify illicit funds transfers and to electronically compare transactions or parties against the OFAC SDN list.
T
OFAC rules prohibit your institution from engaging in transactions with _____________ associated with foreign countries against which federal law imposes economic sanctions.
The governments of or individuals or entities
John, a customer, has requested a transfer of funds from an account at a different institution. It turns out the outside account is blocked.
The transaction must be rejected and reported
The purpose of OFAC sanctions is:
To be foreign policy tools
The OFAC SDN list contains:
U.S. and foreign citizens
If a property is blocked, you must retain a record of the property for at least five years after the date your institution ______________ the property.
Unblocked
OFAC's sound practices include:
Written policies and operations procedures Maintain current SDN lists Effective internal controls and communications *All of the above*
The OFAC terms utilized for actions to be taken against prohibited transactions include:
block, freeze, reject
When the owner of an account is found to be on the SDN list, all transactions must be:
blocked
Only individual accounts, not corporate accounts, may be blocked.
f
Every financial institution must retain a __________ of all licensed transactions in which it engages and are subject to OFAC regulations.
record
OFAC enforces economic and trade __________ against targeted foreign countries, terrorists, and international narcotics traffickers.
sanctions
OFAC has the authority to impose economic sanctions.
t