BSA 13 Office of Foreign Asset Control OFAC

A. B, C, and D are incorrect because the SDN and Blocked Persons List is used to identify individuals and entities with whom the U.S. is prohibited from doing business.

1. The SDN list is generated and updated frequently by OFAC. The list serves to... A. Identify individuals and entities with whom the U.S. is prohibited from doing business B. Identify convicted criminals C. Flag customer accounts if their name appears on an OFAC list D. Monitor the financial activity of suspected terrorists ID:AA4A889FE0844863876F0E1C483EE2F4

B. A is incorrect because the periodic reporting to OFAC is to occur annually—not quarterly. C is incorrect because funds are to be reported within 10 days of blocking and then annually. D is incorrect because it is incomplete and does not state that the bank must also report blocked accounts to OFAC annually and within 10 business days of blocking.

1. Your bank has blocked accounts. How often must they be reported to OFAC? A. Initially when funds are blocked and then quarterly B. Within 10 business days after the funds have been blocked and then annually C. Quarterly for all blocked funds D. Bi-annually for all blocked funds ID:C4D0ABBC1C3E4CE79BD3C3168CB8D0DE

D. A, B, and C are incorrect because the SDN and Blocked Persons List is used to identify individuals and entities with whom the U.S. is prohibited from doing business.

2. Checking names against the SDN list must be included in the policies and procedures for every bank. The list serves to... A. To help identify convicted criminals B. To help flag customer accounts if their name appears on an OFAC list C. To help monitor the financial activity of suspected terrorists D. To help identify individuals and entities with whom the U.S. is prohibited from doing business ID:585943247F464B7083701D6D5C6BE90C

C. A, B, and D are incorrect because if you identify a match you must contact the designated person at the bank who should call the OFAC Compliance Hotline.

2. Noncompliance with OFAC regulations can lead to civil and criminal penalties. To be in compliance, what action must be followed if you or your bank identifies a true name match between a potential customer and a name on the SDN list? A. Flag the account for monitoring purposes B. Include it on the bank's annual report C. Notify the bank's OFAC officer who will contact the OFAC Compliance Hotline D. Contact your bank's Federal regulator ID:586AD2BE3B5D414C881C6F172541B07D

A. B, C, and D are incorrect because OFAC administers economic and trade sanctions against hostile targets.

2. The history of using economic sanctions dates back to the War of 1812. OFAC succeeds the FFC established during World War II for what primary purpose? A. Administer economic and trade sanctions against hostile targets B. Regulate federal financial institutions C. Examine bank's compliance with OFAC regulations D. Issue OFAC regulations ID:F2CE39E2CDDF443FBECB05812C5D5B73

B. A, C, and D are incorrect because the OFAC is part of the Department of the Treasury and the OFAC sanctions are found on the OFAC section of the Treasury Department's website.

2. Where can a bank locate the OFAC restrictions? A. It is part of the BSA B. On the Treasury Department's website C. From the vendor the bank uses to monitor for OFAC D. From the Department of Defense ID:67617B84592340B2A4D5ADEE1BA12497

D. A, B, and C are incorrect because OFAC administers economic and trade sanctions against hostile targets.

3. OFAC was created for what primary purpose? A. Regulate federal financial institutions B. Examine bank's compliance with OFAC regulations C. Issue OFAC regulations D. Administer economic and trade sanctions against hostile targets ID:DA76FDD19E4141EDA37E19659C5D5CB9

B. A is incorrect because OFAC compliance includes individuals. C is incorrect because OFAC compliance is not restricted to the contiguous U.S. borders. D is incorrect because OFAC compliance applies to all U.S. citizens and permanent resident aliens, regardless of where they are located; all persons located within the U.S.; and to all U.S. incorporated entities and their foreign branches.

3. Which option most accurately lists who must comply with OFAC? A. All U.S. incorporated entities and their foreign branches B. All U.S. citizens and permanent resident aliens, regardless of where located; all persons within the U.S.; and U.S. incorporated entities and their foreign branches C. All persons and entities within the contiguous U. S. D. All foreign persons and entities within the U. S. ID:C5C381277F9643628DEA084E567760D1

D. A is incorrect because OFAC compliance includes individuals. . B is incorrect because OFAC compliance is not restricted to the contiguous U.S. borders. C is incorrect because OFAC compliance applies to all U.S. citizens and permanent resident aliens, regardless of where they are located, to all persons located within the U.S.; and to all U.S. incorporated entities and their foreign branches.

3. Who is subject to OFAC compliance? A. All U.S. incorporated entities and their foreign branches B. All persons and entities within the contiguous U. S. C. All foreign persons and entities within the U. S. D. All U.S. citizens and permanent resident aliens, regardless of where located; all persons located within the U.S.; and all U.S. incorporated entities and their foreign branches ID:9E9F6C43EBDF40A9A74B131978E2BE06

A. B, C, and D are incorrect because if you are instructed by OFAC to block funds on a demand deposit account, you must place the funds in an interest bearing account from which only OFAC-authorized debits may be made.

3. You have been instructed by OFAC to block funds in a demand deposit account. What should you do? A. Place the funds in an interest bearing account from which only OFAC-authorized debits may be made B. Place a hold on the account C. Place the funds in a 12 month time deposit D. Place the funds in the bank's longest time deposit ID:858C14248A714934878035705B9C134A

C. A is incorrect because the periodic reporting to OFAC is to occur annually—not quarterly. B is incorrect because funds are to be reported within 10 days and then annually. D is incorrect because it is incomplete and does not state that the bank must also report blocked accounts to OFAC annually and within 10 business days of blocking.

3. Your bank has blocked accounts. How often must they be reported to OFAC? A. Initially when funds are blocked and then quarterly B. Quarterly for all blocked funds C. Within 10 business days after the funds have been blocked and then annually D. Bi-annually for all blocked funds ID:90C7DE5BEF954962A36C7FE9B1FB2677

D. A, B, and C are incorrect because if you identify a match you must contact the designated person at the bank who should call the OFAC Compliance Hotline.

4. Kylie is opening an account for a customer who is new to the bank. As part of her bank's procedures, Kylie checks the SDN list and discovers a true name match for this customer. What action should be taken by Kylie? A. Flag the account for monitoring purposes B. Include it on the bank's annual report C. Contact the bank's Federal regulator D. Notify the bank's OFAC officer who will contact the OFAC Compliance Hotline ID:432B177990F44338A402A2FCA65F97DD

B. A, C, and D are incorrect because OFAC administers economic and trade sanctions against hostile targets.

4. What is the purpose of OFAC? A. Regulate federal financial institutions B. Administer economic and trade sanctions against hostile targets C. Examine bank's compliance with OFAC regulations D. Issue OFAC regulations ID:ECAD0820EBA44357A239FA6DFA1B2C2F

D. A is incorrect because the periodic reporting to OFAC is to occur annually—not quarterly. B is incorrect because funds are to be reported within 10 days and then annually. C is incorrect because it is incomplete and does not state that the bank must also report blocked accounts to OFAC annually and within 10 business days of blocking.

4. You are responsible for reporting blocked account information to OFAC. How often must your reporting be done? A. Initially when funds are blocked and then quarterly B. Quarterly for all blocked funds C. Bi-annually for all blocked funds D. Within 10 business days after the funds have been blocked and then annually ID:46C23997A62540529A7CD99C87EDE8AE

C. A, B, and D are incorrect because if you are instructed by OFAC to block funds, you must place the funds in the bank's shortest time deposit.

5. What should you do if OFAC tells you to block the funds in a time deposit account? A. Place a hold on the account B. Place the funds in a 12 month time deposit C. Place the funds in the bank's shortest time deposit D. Place the funds in the bank's longest time deposit ID:C83DCC0B577A4E5DA6BBED5E5CCA76E1

D. A and B are incorrect because whether or not an institution blocks or rejects a transaction is based on the nature of the sanction. In some cases, a transaction must be blocked, and in other cases, even though an underlying transaction may be prohibited, there may be no blockable interest in the transaction. In these cases, the transaction is simply rejected or not processed. C is incorrect because if the transaction should be rejected or is blockable the customer should not be given access to the funds.

5. When processing a transaction and comparing names of new or existing customers to the most recent SDN list, you may discover a possible match. If you have a question about a transaction that involves a person or entity on the OFAC SDN list, which statement is true? A. When in doubt, the bank should immediately block the transaction and report it to OFAC B. It is always best to reject a transaction involving an SDN C. Open the account and provide access to the funds—then contact OFAC for further instructions D. Questions about whether a transaction should be blocked or rejected should be directed to OFAC ID:BBA0ABB3BC284EA380CA64FF8F16100F

D. A, B, and C are incorrect because the OFAC is part of the Department of the Treasury and the OFAC sanctions are found on the OFAC section of the Treasury Department's website.

6. OFAC prepares and provides sanctions lists of countries, individuals, and entities. Where can a bank locate the OFAC restrictions? A. It is part of the BSA B. From the vendor the bank uses to monitor for OFAC C. From the Department of Defense D. On the Treasury Department's website ID:8A6490792A194A8C99866CF254D3EAC1

D. A, B, and C are incorrect because if you are instructed by OFAC to block funds, you must place the funds in the bank's shortest time deposit.

6. The bank has received instructions from OFAC to block funds in an existing time deposit account. What should you do? A. Place a hold on the account B. Place the funds in a 12 month time deposit C. Place the funds in the bank's longest time deposit D. Place the funds in the bank's shortest time deposit ID:87F5D0D6BA8A402FA73AB50B62400456

B. A, C, and D are incorrect because if you identify a match the designated person at the bank must contact the OFAC Compliance Hotline.

7. What action should the bank's OFAC officer take if a true name match between a potential customer and a name on the SDN list is discovered? A. Flag the account for monitoring purposes B. Contact the OFAC Compliance Hotline C. Include it on the bank's annual report D. Contact the bank's Federal regulator ID:D2309284C1F0419A8146A29281BF8FDE

C. A, B, and D are incorrect because the SDN and Blocked Persons List is used to identify individuals and entities with whom the U.S. is prohibited from doing business.

8. How does checking names against the SDN list help the U.S. comply with economic and trade sanctions? The list serves to ... A. Identify convicted criminals B. Flag customer accounts if their name appears on an OFAC list C. Identify individuals and entities with whom the U.S. is prohibited from doing business D. Monitor the financial activity of suspected terrorists ID:C6068519A45C46ED938667265BAEBB14

C. A and B are incorrect because whether or not an institution blocks or rejects a transaction is based on the nature of the sanction. In some cases, a transaction must be blocked, and in other cases, even though an underlying transaction may be prohibited, there may be no blockable interest in the transaction. In these cases, the transaction is simply rejected or not processed. D is incorrect because if the transaction should be rejected or is blockable the customer should not be given access to the funds.

8. If a bank has questions about a transaction that involves a person or entity on the OFAC SDN list, which statement is true? A. When in doubt, the bank should immediately block the transaction and report it to OFAC B. It is always best to reject a transaction involving an SDN C. Questions about whether a transaction should be blocked or rejected should be directed to OFAC D. Open the account and provide access to the funds—then contact OFAC for further instructions ID:22774D20566F467F94615B2763E10823

C. A, B, and D are incorrect because the OFAC is part of the Department of the Treasury and the OFAC sanctions are found on the OFAC section of the Treasury Department's website.

8. OFAC frequently updates the sanctions lists, which show countries, individuals, and entities that basically are prohibited to anyone who is subject to the jurisdiction of the United States. Each bank must have procedures for ensuring that the most up-to-date lists are used. Where can a bank locate the OFAC restrictions? A. It is part of the BSA B. From the vendor the bank uses to monitor for OFAC C. On the Treasury Department's website D. From the Department of Defense ID:CE591355858846948D1E176506825232