Which test should be included in a bank's Office of Foreign Assets Control sanctions screening audit program?

Question

Options

• AReviewing wire transfer screening processes to ensure that potential name hits are investigated
• BLooking at copies of suspicious activity reports filed with regulators to ensure completeness
• CEnsuring that all clients with foreign identification are subject to enhanced due diligence
• DExamining Human Resources processes for conducting criminal background checks on

• A
  82% (28)
• B
  9% (3)
• C
  3% (1)
• D
  6% (2)

Explanation

-Wire transfers are one of the most common methods of moving funds across borders and jurisdictions, and therefore pose a high risk of violating OFAC sanctions. A bank's OFAC sanctions screening audit program should include a test to review the wire transfer screening processes to ensure that potential name hits are investigated promptly and appropriately, and that any blocked or rejected transactions are reported to OFAC in a timely manner. This test would help the bank to assess the effectiveness of its screening system, identify any gaps or weaknesses, and demonstrate its compliance with OFAC regulations.

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