FAC No. GEN-594137

Date issued: Nov. 30 2011

You've hit a wall. Sign in if you have an account, or learn more about TURBOFAC and subscription options.
TURBOFAC is a module of the compliance platform OverRuled. To learn more about OverRuled, visit www.overruled.com.

TURBOFAC Commentary (428 words)

Notes:

1) The guidance clarifies the importance of in-process screening and blocking capabilities for financial institutions. The guidance suggests that, unlike OFAC's allowing certain institutions to reject otherwise blockable funds in the interests of the smooth functioning of the ACH system (Letter from OFAC to Nacha re: Rejecting IAT Transactions (2009)), OFAC is unwilling to permit screening subsequent to the crediting of accounts, even if institutions are able to ensure that the funds are blocked prior to a beneficiary being able to use them. Compare Civil Enforcement Information - PayPal, Inc..

2) Note that the question here appears not to relate to the crediting of blocked accounts, but the crediting, to unblocked accounts, of funds in which a blocked person has an interest or which otherwise relate to a prohibited transaction. From a legal basis standpoint, OFAC appears to be saying...