Office of Foreign Assets Control (OFAC)

Question 1

T or F
The Office of Foreign Assests Control (OFAC) is a department of the U.S. Treasury Department that enforces economic and trade sanctions against targeted hostile foreign countries and their agents.

Answer 1

True

Question 2

T or F
A credit union must check the OFAC Sanctions List when a member joins the credit union, opens a new account, sends a bank wire and/or buys a credit union check payable to a foreign payee.

Answer 2

True

Question 3

T or F
OFAC likely applies to a credit union when members want to wire money overseas.

Answer 3

True

Question 4

T or F
If a member comes into the credit union’s office and wants to wire a large sum of money to a bank account overseas, the credit union should
1. check the current list of OFAC blocked countries.
2. place a block or freeze on the funds if the country appears on the list.
3. file a report of the block with in 10 days.

Answer 4

True

Question 5

T or F
If a credit union uses OFAC software it will have no liability under OFAC

Answer 5

False

Question 6

T or F
If the credit union files an OFAC report it must retain the report indefinitely

Answer 6

False- OFAC records 5 years

Question 7

T or F
If a credit union violates the OFAC requirements it can lose its NCUA insurance coverage.

Answer 7

False

Question 8

T or F
Only credit unions doing international wires or transactions are subject to OFAC

Answer 8

False