Duane Bavlnka

The Office of Foreign Assets Control of the Department of the Treasury administers and oversees a series of laws that impose economic sanctions on hostile targets, to further U.S. foreign policy and national security objectives.

OFAC laws and regulations promote national and international security by requiring the freezing of assets belonging to oppressive governments, international terrorists, narcotic traffickers and other specially designated persons.

North Shore Bank routinely compares the names of new account customers to government lists. In the deposit areas, this is done using the Qualifile system. In the lending areas, this is done as part of the credit report process. Comparisons are also done weekly through our OFAC software program.

What happens if we get an OFAC “hit”?

If, during the new deposit account or new loan account process, we get an OFAC hit, we must stop the process until we are satisfied the hit is only a false positive and not a true hit.

We must also determine if an OFAC hit is a false positive or a genuine hit if one is found during our weekly review of accounts. If the hit is a true hit, we must place a hold on the customer’s accounts and restrict access to the accounts. We must also notify the government that we are holding accounts for a person on the OFAC list.

Your curiosity piqued? Need more information? Refer to the bank’s OFAC compliance procedures in Section O of the Branch Policies and Procedures Manual for more information on OFAC rules.