Frequently Asked Questions
(Sorted By Question) |
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| 1 |
What
is OFAC and what does it do? |
| 2 |
How
long has OFAC been around? |
| 3 |
What
does one mean by the term "prohibited transactions"? |
| 4 |
Are
there exceptions to the prohibitions? |
| 5 |
How do I determine if I have a valid OFAC match? |
| 6 |
Where
can I find the specific details about the embargoes? |
| 7 |
Can
I get permission from OFAC to transact or trade with an embargoed
country? |
| 8 |
What
must I do to get permission to trade with an embargoed country? |
| 9 |
What
do you mean by "blocking?" |
| 10 |
What
countries do I need to worry about in terms of U.S. sanctions? |
| 11 |
Who
must comply with OFAC regulations? |
| 12 |
How
much are the fines for violating these regulations? |
| 13 |
Is
there a mechanism for a company to report its past undetected
violations of OFAC regulations for completed transactions? Is
any type of "amnesty" available for inadvertent failure
to comply prior to the company becoming aware of the OFAC regulations? |
| 14 |
Can
I regard previously issued and published opinion letters, regulatory
interpretations, or other statements as guidance for my transactions? |
| 15 |
Can
OFAC change its previously stated, non-published interpretation
or opinion without first giving public notice? |
| 16 |
Why
are there two separate subscription services on OFAC's website,
one called a "Financial Operations Bulletin" and the
other a "What's New" notice? |
| Questions about
Specially Designated Nationals (SDNs) |
|
|
| 18 |
What
is an SDN? |
| 19 |
How
do I get a copy of this list? |
| 20 |
How
often is the SDN list updated? |
| 21 |
How
do I know what specific changes have been made to OFAC's SDN
list? |
| 22 |
Does
OFAC maintain or can it create a country-by-country list of
SDNs? |
| 23 |
What
do I do if I have a match to the SDN list? |
| 24 |
What
is the Control list? Who do I call about the Control list? What
is the difference between the Control list and OFAC's SDN list? |
| Questions
from Financial Institutions |
|
|
| 25 |
Does
OFAC itself require that banks set up a certain type of compliance
program? |
| 26 |
How
do I get the OFAC Starter Kit? |
| 27 |
What
do I need to do to comply? Do I have to buy expensive software? |
| 28 |
How
often do I need to scan my customer database for SDNs? |
| 29 |
How
do I setup a compliance program for my bank? |
| 30 |
How
do I know if my compliance program is adequate? |
| 31 |
What
are the features and benefits that banks should be looking for
when selecting an OFAC compliance software package? |
| 32 |
How
do I block an account or a funds transfer? |
| 33 |
How
much interest do I have to pay on the blocked funds? |
| 34 |
Can
my bank deduct service charges from the account? |
| 35 |
Do
all OFAC programs involve blocking transactions? |
| 36 |
I
understand blocking a transaction, but what is meant by rejecting
a transaction? When should a transaction be rejected rather
than blocked? |
| 37 |
My
bank operates accounts for individuals living in Iran. OFAC
has told us that these accounts cannot be operated. Does this
mean that the accounts are blocked? |
| 38 |
Are U-Turn payments for Iran still permitted? |
| 39 |
What
do I do if I have a blocked account that needs to be escheated
to the state? |
| 40 |
If
my financial institution receives a wire going to an embassy
in a sanctioned country, can we process the transaction? |
| 41 |
Should
an institution tell its customer that it blocked their funds,
and, if so, how does the institution explain it to them? |
| 42 |
What
do I do if a person tries to open an account and the person's
name is on OFAC's SDN list? Do I open the account and then block
the funds? |
| 43 |
Does
a financial institution need to scan names against OFAC's list
of targets upon account opening or can it wait for 24 hours
to receive a report from its software vendor on whether or not
there is a hit? |
| 44 |
Is
there a dollar limit on which transactions are subject to OFAC
regulations? |
| 45 |
Does
my bank need to check the OFAC list when selling cashier's checks
and money orders? In the case of cashier's checks, do I need
to check both the purchaser and the payee? As a mortgage lender,
do I need to check both the purchaser and the seller's name
against the SDN list? |
| 46 |
If
a loan meets underwriting standards but is a true "hit"
on the OFAC list, what do we use as a denial reason on the adverse
action notice? |
| 47 |
Through
corporate giving programs, many banks contribute toward charities
and other non-profits. To what extent does a bank need to review
the recipients of these gifts or the principals of the charities? |
| 48 |
I
just received an interdiction "alert." What do I do? |
| 49 |
When
a transaction is rejected or blocked, I have ten days to report
it. Do I have to do it in writing or can I call OFAC Compliance
and report it that way? |
| 50 |
Is
there a requirement for annual reporting of blocked property?
Is there a required format? |
| 51 |
How
do I apply for a license to get my money unblocked? |
| 52 |
Can
U.S. financial institutions open correspondent accounts for
Iraqi financial institutions, or process funds transfers to
and from Iraqi financial institutions? |
| 53 |
How
do I differentiate between an "inquiry" and a "payment
instruction" when a customer wants to send a wire transfer
to a sanctioned party or country? |
| 54 |
I
have an account with a W-8 showing an address in Iran. Is the
account automatically restricted? |
| 95 |
Does a financial institution have the obligation to screen account beneficiaries for compliance with OFAC regulations? |
| Questions from
Exporters & Importers |
|
|
| 55 |
Does
OFAC have an exporter assistance phone line? |
| 56 |
What
is the difference between the SDN List and the Commerce Department's
List of Denied Parties? Why can't they be integrated into one
list? |
| Questions related
to NGO Registration Numbers |
|
|
| 57 |
How
do I get an NGO registration number? |
| 58 |
What
are the chances that my application will be approved? |
| 59 |
Do
I need a registration number or license to donate goods? |
| Questions
from the Insurance Industry |
|
|
| 61 |
State
insurance statutes regulate an insurer's ability to withhold
claim payments, cancel policies or to decline to enter into
policies. In some cases, insurers must commit an ostensible
violation of state insurance regulations to comply with OFAC
regulations. Does OFAC have a position as to whether OFAC regulations
preempt state insurance regulations in this context? |
| 62 |
At
what point must an insurer check to determine whether an applicant
for a policy is an SDN? |
| 63 |
What
should an insurer do if it discovers that a policyholder is
or becomes an SDN--cancel the policy, void the policy ab initio,
non-renew the policy, refuse to pay claims under the policy?
Should the claim be paid under a policy issued to an SDN if
the payment is to an innocent third-party (for example, the
injured party in an automobile accident)? |
| 64 |
A
workers' compensation policy is with the employer, not the employee.
Is it permissible for an insurer to maintain a workers compensation
policy that would cover a person on the SDN List, since the
insurer is not transacting business with the SDN, but only with
his/her employer? |
| 65 |
How
frequently is an insurer expected to scrub its databases for
OFAC compliance? |
| 66 |
Is
it sufficient if my company screens life insurance policies
only prior to policy issuance? |
| 67 |
If
my policyholder, who is a U.S. person, requests a change of
beneficiaries and designates a cousin living in Cuba as a beneficiary
under the life insurance policy, what shall I do? |
| 68 |
If
my screening efforts uncover a policyholder who became an SDN
after policy issuance, can I notify the policyholder that the
policy is “blocked”? |
| 69 |
In
my letter to the policyholder whose policy is “blocked,”
may I also instruct the policyholder not to send any more premium
or that we will not accept additional premium under this account? |
| 102 |
How can an insurer participate in worldwide insurance markets through global insurance policies if, by definition, coverage extends to potential countries? |
| 103 |
What if the commercial setting and/or market circumstances of a global insurance policy does not permit the use of an OFAC exclusion such as the one noted above? |
| 104 |
Can an insurer offer global travel insurance and worldwide travel assistance without violating U.S. sanctions? |
| |
| 70 |
What
Is This OFAC Information On My Credit Report? |
| 71 |
How
Can I Get The OFAC Alert Off My Credit Report? |
| |
| 72 |
Can
I send money to a sanctioned country using a third-country company's
website? Can I buy gifts for someone in a sanctioned country
over the internet? The websites tell me that it's o.k.
because they themselves are not sanctioned parties. |
| 73 |
My
company provides money remittance and account services via the
Internet. Does OFAC have any compliance guidance for this type
of business? |
| |
| 74 |
What
is a license? |
| 75 |
Do
I have to fill out a particular form to get a license to engage
in a transaction? |
| 76 |
Can
I appeal a denial of my license application? |
| 77 |
How
can I find out the status of my pending license application? |
| 78 |
What
agencies other than Treasury review OFAC license applications
and what are the roles of these other agencies? |
| 94 |
Is
a license required to enter into an over flight permit agreement
with the Cuban Civil Air Authority, even if there is no cost? |
| 97 |
What format options are permitted for submitting license applications pursuant to the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA)? |
| 98 |
How should I present my TSRA license application? |
| 99 |
What is the procedure for submitting multiple copies of the same TSRA license application? |
| 100 |
If I am submitting multiple TSRA license applications at the same time, should I send them under a single cover letter? |
| 101 |
Should I send a sample of the proposed export product as an attachment to my TSRA license application? |
| Technology
Questions |
^
TOP |
|
| 79 |
Does
OFAC provide its SDN List in a format that can be easily imported
into a database? |
| 80 |
Does
OFAC provide its SDN List in a spreadsheet format? |
| 105 |
OFAC says it has updated its SDN list, but when I download the appropriate SDN files from the OFAC website, they appear to be out-of-date. Where can I get the latest SDN information? |
| 81 |
What
is the delimiter in OFAC's delimited files? |
| 82 |
Does
OFAC have a web-based SDN search engine? |
| 83 |
How
are OFAC's delimited files structured? |
| 84 |
Does
OFAC maintain its files in locations other than on its website? |
| 85 |
Is
there a version of the delimited archive that works with UNIX? |
| 86 |
Does
OFAC have an email service that will notify me when there are
updates to the SDN list? |
| 87 |
Your
FTP site has gone offline. Who should I contact to remedy this
problem? |
| 88 |
I
am a systems administrator looking to design an automated process
that will download the SDN list without human intervention.How
can I do this given that changes to the SDN list can be sporadic? |
| 89 |
I
am a database administrator at a bank and responsible for keeping
my company's SDN data current. Is the SDN list comprehensive
or do I need to download some kind of supplement to the list
every time there is an update? |
| 90 |
Do
you offer the OFAC Financial Operations Bulletin in a delimited
format? |
| 91 |
I
am looking for the terrorist list on your web site so I can
bring my company in compliance with U.S. law. Where can I find
this list? |
| 92 |
I'm
a subscriber to OFAC's e-mail notification services. For some
reason I have stopped receiving the broadcast messages when
OFAC updates its website. Why is this? |
| 93 |
I
recently attempted to subscribe to one of OFAC's e-mail
list services and I have not yet received my confirmation e-mail.
Why is this? |
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| OFAC-related Freedom of Information Act
Questions |
|
|
| 106 |
Why was this letter sent to me? - Related to Submitter Notice Letters in FOIA Case 2005-09-043 |
| 107 |
Who requested the information?- Related to Submitter Notice Letters in FOIA Case 2005-09-043 |
| 108 |
How should I treat these requests? - Related to Submitter Notice Letters in FOIA Case 2005-09-043 |
| 109 |
What information and/or records are the requesters seeking? - Related to Submitter Notice Letters in FOIA Case 2005-09-043 |
| 110 |
Can I get a copy of the initial FOIA requests? - Related to Submitter Notice Letters in FOIA Case 2005-09-043 - |
| 111 |
What should I do if I believe that my information is confidential commercial or financial information that should not be released? - Related to Submitter Notice Letters in FOIA Case 2005-09-043 |
| 112 |
What should I do if I believe that my information is not confidential commercial or financial information, such that I do not object to its release? - Related to Submitter Notice Letters in FOIA Case 2005-09-043 |
| 113 |
What will OFAC do with my submission? - Related to Submitter Notice Letters in FOIA Case 2005-09-043 |
| 114 |
Will OFAC provide additional time in order to prepare a response? - Related to Submitter Notice Letters in FOIA Case 2005-09-043 |
| 115 |
How can I get my response to OFAC? - Related to Submitter Notice Letters in FOIA Case 2005-09-043 |
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