What is OFAC?

Image courtesy of publicintelligence.net

What do you know about OFAC? Most of us heard the word but what does it really mean? One of our clients I've called recently for a verification regarding her full name, address, her current status and relationship to the remitter, asked me what it meant. I could not tell her that it had something to do with terrorists and narcotics traffickers since such term may flabbergast her. I only told her that she has a ...  uhmm ... namesake! Then after a while, I called her back for a confirmation. I was taken aback when she said that I lied. Then she insisted that her name has nothing to do with a person that goes by the name of Sahiron.

So what is OFAC really? OFAC or Office of Foreign Assets Control is an agency of the United States Department of the Treasury under the auspices of the Under Secretary of the Treasury for Terrorism and Financial Intelligence. OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals against targeted foreign states, organizations, and individuals.[1] (Does this make your nose bleed?)

In an empirical view, OFAC controls groups or individuals such as terrorists and the like, hindering them from transacting and funding, or freezing them of their assets. And in order to support this enforcement, OFAC maintains and regularly updates a Specially Designated Nationals or SDN list.

Sample SDN List

What is SDN list? SDN list is a collection of individuals, companies groups and entities such as terrorists and narcotics whose assets and transactions are blocked and prohibited.

Question. What about the remitters from Brunei? Would their beneficiaries be affected by this policy? Answer. U.S. Department of the Treasury has no jurisdiction over Brunei since individuals involved does not reside in the U.S.. But since the policy exists, and Philippine banks observe this sensitive procedure where account holders should meet OFAC compliance that would exactly match the SDN list, thereby we will only block a transaction. But you don't have to worry since you're not or with any alliance with a terrorist at the first place wouldn't you?

I guess this wraps it up. And I did not forgot my promise regarding customer service representative "confessions". Until next time. Get ready for more 'coz ...  Here Comes Johnny!

"What's in a name? That which we call a rose by any other name would smell as sweet." (Shakespeare). But if your name is in the SDN list, would it still smell as sweet? 



Reference
1. http://en.wikipedia.org/wiki/Office_of_Foreign_Assets_Control