OFAC screening is an important aspect of Know Your Customer compliance. If you’re not familiar with OFAC screening, we’ve outlined some of the most important things to know about it and how you can improve your OFAC screening procedures.
What is OFAC Screening?
OFAC Screening is screening that checks new customers against the watchlists put together by the Office of Foreign Assets Control. This is a division of the US Department of the Treasury. Individuals, organizations, and countries on this watchlist need to be flagged so you don’t open your business up to fines and penalties, as well as enabling illegal activities. For more information on OFAC screening, visit the website.
Why OFAC Screening is Important
The individuals, entities, and countries on the OFAC watchlists have restrictions on them for a variety of reasons. There are various different kinds of watchlists that the OFAC puts together including the Forisgn Sanctions Evaders lists, Foreign Narcotics Kingpins list, and more. Doing business with entities on these watchlists can cause all kinds of issues for your organization. You can get fines, penalties, or even jail time.
All business transactions in KYC-compliant organizations should be screened in order to detect any of these potential entities at any phase of the transaction process. If you don’t have your OFAC screening automated, it can likely cost you a lot of time and slow down your verification processes. Luckily, there are ways to automate OFAC screening and make sure that you’re covered.
Choosing the RIght OFAC Screening Software
With the right screening solution, you can make sure that illegal and fraudulent activities are automatically detected. Also, you’ll automatically be able to check transactions and accounts against OFAC watchlists, ensuring that you’re compliant in any and all situations. This protects your business from liabilities, but it also provides a better experience for your customers. You shouldn’t take any chances with your compliance screening solutions. Make sure you and your customers are protected and save time screening and rescreening customers while you’re at it.
Screening software doesn’t have to cause customer friction either. With a sophisticated solution, sign-up will be easy for customers without feeling intrusive. Make sure you’re not opening your business up to any fines and penalties by putting the right screening solution in place today.
Read a similar article about PEP screening solutions here at this page.
