We understand you might have some questions aboutOFAC Search, OFAC Screening and OFAC Compliance.
We’ve prepared some answers to the most frequently asked questions, but if we don’t have an answer for you below, please contact us today.
What is OFAC search or screening?
OFAC Search (also known as OFAC Screening, OFAC Scrubbing, and OFAC List Screening) is the process by which organizations identify whether or not any parties involved in a transaction can be found on watch lists maintained by the Office of Foreign Assets Control (OFAC), a division of U.S. Department of the Treasury. It also helps to ensure organizations are not conducting business with, or someone located in, a sanctioned or embargoed country.
Do I really need to worry about OFAC search and screening?
Yes. There are a number of watch lists of individuals, entities and countries that, for a variety of reasons, the U.S. Treasury Department have placed restrictions upon conducting business. OFAC-specific watch lists include the Specially Designated Nationals (SDN) list, the Foreign Sanctions Evaders (FSE), Sectoral Sanctions Identifications (SSI), Foreign Narcotics Kingpins, and others.
If you do business with entities on these watch lists, you are exposing your organization to the risk of fines and other penalties. Between 2015 and 2018 alone, OFAC levied over $800 Million worth of fines—and that’s not counting other criminal convictions and jail time. Making sure that you are not doing business with anyone on OFAC and other government watch lists helps protect you and your company from said fines, other penalties, and negative news coverage.
Do governments outside the U.S. have screening lists? Are there International lists?
Yes. The U.S. is not the only country that has lists similar to those maintained by OFAC. Many foreign countries and international bodies have their own laws which require the vetting of entities, including financial lists such as the HM Treasury Consolidated List, the OSFI Consolidated List, and World Bank Listing of Ineligible Firms.
Has anyone been found guilty of violating OFAC regulations?
Yes. A number of companies have been fined for knowingly and unknowingly violating OFAC regulations. A list of recent OFAC actions can be found at here.
Who should be screened?
Generally speaking, everyone and every business transaction should be screened. Screening should be performed on any party involved in the transaction, including the final end user, and the chain of individuals and businesses in-between. Screening can also be used for contacts, visitors, employees, business associates, re-sellers, etc.—though the lists screened may vary for each of these purposes. Countries should also be screened to ensure they are not currently facing sanctions or embargoes.
My company doesn’t export goods or services. Do I need to screen financial transactions?
Yes. Many large transactions are facilitated in U.S. Dollars, and processed through U.S. Banks. These banks may freeze funds from being transferred to sanctioned parties or face penalties themselves. To avoid this possibility, screening is recommended, especially against OFAC’s Specially Designated Nationals (SDN) watch list.
When should screening take place?
Businesses may choose to screen potential customers or vendors at first contact. Some screen again when orders or finances change hands, and repeat this process with each order. Other organizations will have automated rescreening take place instead of rescreening manually. Visitors may be screened when they sign up for a tour, or on the spot when they arrive.
What is really important about when screening takes place is that it should fit the regulatory goals of the organization—ensuring that finances, technology, information, or goods are not transferred in violation of regulations.
How does Visual OFAC help protect me from violating OFAC and other trade regulations?
Visual OFAC’s screening solutions check for individuals and companies that are found on U.S. and international government watch lists; as well as countries facing sanctions or under embargo. Our global sanctions screening tool helps protect you from conducting business with these entities by alerting you to their presence on government watch lists.
How much does Visual OFAC cost?
Visual OFAC’s screening solutionsare affordable and modular. Your organization can choose which solution (or solutions) fit your current OFAC compliance needs, and be confident that should those needs change, we have additional cost-effective screening tools to add to your OFAC compliance arsenal. Don’t hesitate to contact us today if you have any questions about our OFAC search solutions, or to request a quote.
