AML and OFAC Compliance for Financial Institutions

The USA maintains its anti-money laundering policies to combat money laundering and financial crimes. OFAC is of great importance in the AML compliance processes of obliged individuals and organizations in the USA. Due to the ban on transactions with people and organizations on OFAC's sanction lists, companies in the USA have to check the OFAC sanction lists in AML control processes. Therefore, there is a natural relationship between OFAC compliance and AML compliance.


What are the Duties and Powers of OFAC?


The Office of Foreign Assets Control (OFAC) is the U.S. Department of Treasury's financial intelligence and enforcement agency. The Office of Foreign Assets Control (OFAC) was established in 1950 to protect US national security. OFAC's powers include enforcing sanctions and embargoes on countries, organizations and individuals. OFAC obtained these powers from the US Federal Laws. OFAC's mandate and scope are very broad. U.S. citizens and U.S. organizations have to comply with OFAC. OFAC publishes the Specially Designated National (SDN) list, which lists individuals, organizations, and ships where liable individuals and organizations are prohibited from doing business.


AML and OFAC Requirements


Financial institutions contain high risks in terms of financial crime due to their services. The USA has clearly stated the obligations of financial institutions with AML regulations in compliance with FATF. According to these obligations, financial institutions are obliged to make AML checks on account openings, money transfers and private banking transactions. Companies must fulfill their Know Your Customer and Customer Due Diligence obligations when opening a customer account. The company is scanned for its new customer on OFAC sanction lists. If the customer is detected in the OFAC list, the company cannot open an account for that person. OFAC sanction lists are updated day by day. Companies should regularly check their existing customers on OFAC sanction lists to avoid damaging AML compliance. Companies are responsible for reporting suspicious transactions to authorized units during AML checks.


AML Name Screening Software


Fulfill Your Requirements for OFAC and AML Regulations


OFAC sanction lists are updated frequently. It is not safe to manually check the OFAC sanction lists and it is a waste of time for companies. Sanction Scanner instantly monitors Specially Designated Nationals List (SDN Lists), Consolidated Sanctions List and all other OFAC sanction lists. Organizations can scan their customers in OFAC sanction lists in seconds using our Sanction & PEP Screening service. You can contact us to ensure your AML and OFAC compliance.


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