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Can you summarize Core Examination Procedures for Regulatory Requirements and Related Topics > Office of Foreign Assets Control?
Core Examination Procedures for Regulatory Requirements and Related Topics > Office of Foreign Assets Control
Short Summary
This document pertains to the assessment of a bank’s risk-based Office of Foreign Assets Control (OFAC) compliance program. OFAC is an office of the U.S. Treasury that administers and enforces economic and trade sanctions. The document outlines the requirements for banks to comply with OFAC regulations, including blocking accounts and property of specified countries, entities, and individuals, prohibiting unlicensed trade and financial transactions, and reporting blocked and rejected transactions to OFAC. It also discusses the availability of OFAC licenses and the need for banks to maintain an effective OFAC compliance program, conduct risk assessments, establish internal controls, conduct independent testing, designate responsible individuals, and provide training. Non-compliance with OFAC regulations may result in civil penalties.
Whom does it apply to?
All U.S. persons, including U.S. banks, bank holding companies, and nonbank subsidiaries
What does it govern?
Office of Foreign Assets Control (OFAC) compliance program
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Civil penalties may be as much as $250,000 per violation or twice the amount of a transaction, whichever is greater.
Jurisdiction
U.S. Federal Government