What is it?

The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals. The targets of these sanctions include but are not limited to foreign countries and regimes, terrorists and international traffickers.

As part of its enforcement efforts, OFAC publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific. Collectively, such individuals and companies are called “Specially Designated Nationals” or “SDNs.” Their assets are blocked and U.S. persons are generally prohibited from dealing with them.

 

It’s just a list so how hard can it be?

Financial firms are committed to compliance but the real issue is how to implement an effective compliance program. Data management is a key/critical component of a successful OFAC compliance program. Put simply, if your client data is scattered throughout the enterprise and the information cannot be aggregated and formatted in such a way that it can be accurately compared against the OFAC list, your compliance program will fail.

Furthermore, you need to put in place the right workflows and processes to ensure dynamic monitoring. Joss Technology provides a workflow engine and business rules to assist with your compliance program. Our data quality tools, our exception-management capabilities and the four-eye principle used throughout our platform will make it easy for you to have an effective program. To learn more, please contact us so we can discuss ways to cost-effectively support your OFAC initiative.