When must a United States (U.S.) bank block or reject an international funds transfer when there is an Office of Foreign Assets Control designated party to the transaction?

Question

Options

• AOnly if the U.S. bank is involved in the funds transfer
• BOnly if a U.S. person or entity is the ultimate beneficiary
• COnly if a non-U.S. person or entity is the ultimate beneficiary
• DOnly if the U.S. bank's correspondent informs it of the involvement of the designated party

• A
  72% (18)
• B
  8% (2)
• C
  4% (1)
• D
  16% (4)

Explanation

A U.S. bank must block or reject an international funds transfer when there is an OFAC designated party to the transaction, regardless of the beneficiary or the correspondent bank. This is because the U.S. bank is prohibited from dealing with any person or entity that is on the Specially Designated Nationals and Blocked Persons List (SDN List) or subject to any other OFAC sanctions program. The SDN List includes individuals, groups, and entities, such as terrorists and narcotics traffickers, that are designated under programs that are not country- specific. The U.S. bank must also report any blocked or rejected transactions to OFAC within 10

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