OFAC Publishes Guidance for Banks
Posted by Peter Mucklestone
The Office of Foreign Assets Control (OFAC) recently published a brochure titled "Foreign Assets Control Regulations for the Financial Community" dated June 15, 2007, to help banks comply with the statutes and regulations that OFAC administers.
OFAC administers laws and regulations, including the Trading With the Enemy Act and the International Emergency Economic Powers Act, which further U.S. foreign policy and national security objectives through trade embargoes, blocked assets controls and other commercial and financial restrictions. All U.S. persons, including banks, must comply with the laws and regulations that OFAC administers.
As a matter of sound banking practice and in order to ensure compliance, bank regulatory agencies require that banks implement an OFAC compliance program. OFAC compliance programs are reviewed by the agencies in connection with an examination of the bank's Bank Secrecy Act/Anti-Money Laundering Program.
The brochure provides guidance regarding bank compliance programs and audit procedures. In addition, country-specific requirements are set forth on a country by country basis.
The brochure may be found at the OFAC website.