The OFAC Screening Process ensures thorough risk assessment, compliance verification, and decision-making in managing customer or business relationships.
1
Identify the customer or business that needs to be screened
2
Collect and verify necessary information such as name, address, and date of birth
3
Input the information into the OFAC screening tool
4
Run the OFAC screening tool
5
Document the results of the initial screening
6
If a potential match is found, evaluate the level of risk
7
Investigate whether potential match with OFAC list is a false positive or true match
8
Approval: Risk Manager for possible matches
9
If approved, escalate the potential match to upper management
10
Perform enhanced due diligence if necessary
11
Document the results of enhanced due diligence
12
Make decision on continuing or terminating the customer or business relationship
13
Approval: Compliance Manager for decision
14
Notify the customer or business of the decision
15
Implement the decision, such as closing accounts or continuing monitoring
16
Update the customer or business profile in the database
17
Prepare OFAC compliance report
18
Submit the compliance report to relevant regulatory bodies
19
Archive and store all the relevant documentation for audit purposes
20
Review OFAC screening process for possible improvements
Identify the customer or business that needs to be screened
This task is crucial in identifying the customer or business that needs to undergo OFAC screening. It sets the foundation for the entire process. Through this task, you will determine which individuals or businesses are potentially high risk and ensure compliance with relevant regulations and sanctions programs. The outcome of this task is a clear understanding of the entity that needs to be screened.
1
New customer/business
2
Existing customer/business update
Collect and verify necessary information such as name, address, and date of birth
To conduct thorough OFAC screening, it is essential to collect and verify accurate information about the customer or business. This information includes name, address, and date of birth. Ensure that the collected information is up to date and accurate. This task helps eliminate potential false positive matches and provides more accurate results.
Input the information into the OFAC screening tool
Now that you have collected and verified the necessary information, it is time to input it into the OFAC screening tool. This task ensures that the provided information is entered accurately into the tool to avoid any potential errors in the screening process. Double-check the data entry for accuracy before proceeding.
Run the OFAC screening tool
After inputting the information into the OFAC screening tool, run the tool to screen the customer or business against the OFAC list. This task aims to identify any potential matches with individuals or entities listed on the OFAC list. Make sure to review and understand the tool's output and any potential matches identified.
Document the results of the initial screening
Once you have obtained the results from the initial OFAC screening, it is important to document them for further analysis and reference. This task involves recording the results accurately, including any potential matches and their associated details. This documentation will serve as a basis for the subsequent steps in the screening process.
If a potential match is found, evaluate the level of risk
In the event that a potential match is found during the OFAC screening, it is necessary to evaluate the level of risk associated with the match. This task involves assessing various factors, such as the severity of the match, the individual or business's nature, and the potential impact on compliance. Use your judgment and relevant guidelines to determine the level of risk posed by the potential match.
1
Low
2
Medium
3
High
Investigate whether potential match with OFAC list is a false positive or true match
When a potential match is identified, it is essential to investigate whether it is a false positive or a true match. This task requires delving deeper into the provided information, cross-referencing additional data sources, and considering other relevant factors. Ensure meticulous investigation to distinguish false positives from true matches and minimize the risk of unnecessary escalation.
Approval: Risk Manager for possible matches
Will be submitted for approval:
Document the results of the initial screening
Will be submitted
If approved, escalate the potential match to upper management
If, after careful evaluation and investigation, the potential match is determined to be a high-risk individual or business, it should be escalated to upper management for further review and decision-making. This task involves notifying the relevant individuals in the organization and providing them with all the necessary information and supporting evidence to make an informed decision.
Perform enhanced due diligence if necessary
In certain cases, when dealing with higher-risk individuals or businesses, it may be necessary to conduct enhanced due diligence. This involves gathering additional information, conducting deeper research, and potentially engaging third-party services. Use your expertise and guidelines to determine when enhanced due diligence is required.
1
Third-party background check
2
Source of funds verification
3
Politically exposed person check
Document the results of enhanced due diligence
After performing enhanced due diligence, it is crucial to document the results for compliance purposes and further analysis. This task involves recording any additional information obtained, findings from third-party checks, and any other relevant details gathered during the enhanced due diligence process.
Make decision on continuing or terminating the customer or business relationship
Approval: Compliance Manager for decision
Will be submitted for approval:
Make decision on continuing or terminating the customer or business relationship
Will be submitted
Notify the customer or business of the decision
Implement the decision, such as closing accounts or continuing monitoring
Update the customer or business profile in the database
Prepare OFAC compliance report
Submit the compliance report to relevant regulatory bodies
Archive and store all the relevant documentation for audit purposes
Review OFAC screening process for possible improvements
