Which of the following statements is true regarding Office of Foreign Assets Control (OFAC) sanctions? (Select Two.)

The correct answer is B. Blocked funds must be placed into an interest-bearing account on a financial institution's books C. Sanctions can be either comprehensive or selective using the blocking of assets and trade. OFAC sanctions are a key element of the U.S. AML/CFT framework. According to the CAMS 6th Edition and OFAC regulations: Blocked funds must be placed into an interest-bearing account on a financial institution's books (B):"Blocked property must be held in a separate…

Compliance Standards (International AML/CFT Standards and the role of FATF)

Question

Options

ASanctions can only be placed on certain individuals in foreign countries as designated by OFAC
BBlocked funds must be placed into an interest-bearing account on a financial institution's books
CSanctions can be either comprehensive or selective using the blocking of assets and trade
DOFAC sanctions automatically expire after five years unless renewed by Congress

How the community answered

(44 responses)

A
14% (6)
B
80% (35)
D
7% (3)

Explanation

OFAC sanctions are a key element of the U.S. AML/CFT framework. According to the CAMS 6th Edition and OFAC regulations: Blocked funds must be placed into an interest-bearing account on a financial institution's books (B):"Blocked property must be held in a separate interest-bearing account on the books of the U.S. financial institution."(CAMS 6th Edition, Sanctions Compliance; OFAC FAQs) Sanctions can be either comprehensive or selective using the blocking of assets and trade restrictions (C):"OFAC administers both comprehensive and targeted (selective) sanctions programs to fulfill U.S. foreign policy and national security goals."(CAMS 6th Edition, Sanctions

Topics

#OFAC sanctions#blocked funds#comprehensive sanctions#asset freezing

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