Your bank's president comes back from an industry conference and tells the compliance officer that she attended a presentation about OFAC. She heard the bank could be fined for not adhering to OFAC requirements. Thus, she has directed that every bank transaction be reviewed for OFAC compliance. What is the most appropriate statement the compliance officer could make to the bank president?

Question

Quizplus · Accepted Answer

It is important to let the bank president know that the bank has already implemented risk-based OFAC procedures, which means that transactions are already being reviewed for OFAC compliance based on their level of risk. This will reassure the bank president that the bank is taking necessary measures to comply with OFAC requirements. Option A is not comprehensive enough to cover all bank transactions. Option C is not a correct statement as OFAC does apply to any US financial institution regardless of whether it conducts business in foreign countries or with foreign nationals. Option D is incorrect because banks can be fined for OFAC violations even if they do not conduct transactions with SDNs or blocked countries.

Your Bank's President Comes Back from an Industry Conference and Tells