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