DATE: October 1999 NO.: 99-RA-6
TO: All Federally Insured Credit Unions
SUBJECT: Office of Foreign Assets Control
The Office of Foreign Assets Control (OFAC)
of the Department of the Treasury administers and enforces economic
sanctions against targeted foreign countries, terrorism sponsoring
organizations, and international narcotics traffickers based on
U.S. foreign policy and national security goals. OFAC acts under
Presidential wartime and national emergency powers, as well as
authority granted by specific legislation, to impose controls
on transactions and freeze foreign assets under U.S. jurisdiction.
Financial institutions, including credit unions,
are required, by law, to support these sanctions. Failure to
comply could expose a credit union to adverse publicity, fines,
and even criminal penalties. While OFAC is responsible for promulgating,
developing, and administering the sanctions for the Secretary
of the Treasury, all of the financial institution regulators,
including the NCUA, cooperate to ensure financial institution
compliance.
The primary tool used by the OFAC is a listing
of "Specially Designated Nationals and Blocked Persons."
This list changes regularly in response to changes in foreign
policy. Credit union staff should be aware of the persons and
entities on the list and assure that such accounts and transactions
are blocked and reported to the OFAC in compliance with its regulations.
Complete and current regulations and listings are available at
the OFAC website at http://www.ustreas.gov/ofac/ or via
fax back by calling 1-800-540-OFAC(6322).
Credit unions should contact OFAC staff directly
to ask questions or obtain further information with regard to
this notification. 1-800-540-6322.
This Regulatory Alert replaces Regulatory Alert
number 97-RA-8; dated May 8, 1997.
Sincerely,
/s/
Norman E. D'Amours
Chairman