Confused Over the 314a Request & the OFAC List

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Question:

Is the 314a request the same thing as the OFAC list? I was told they were 2 separate things and I was also told that the 314a requests are the new names that will be included on the OFAC list. Could you please tell me which one is correct?

Answer:

These are 2 different things.

Section 314(a) of the USA PATRIOT Act authorizes law enforcement to communicate directly with financial institutions about suspected money launderers and terrorists. One way of doing this is through the "314(a) Information Requests".

Beginning the week of February 17, 2003, Financial Crimes Enforcement Network (FinCEN) began contacting institutions via e-mail or fax with information on persons or organizations that should be checked against the institution’s records to determine if the institution has done business with those stated on the list. These request lists are sent by FinCEN every two weeks.

The Office of Foreign Assets Control (OFAC) is responsible for the administration and enforcement of trade and economic sanctions against certain foreign countries, organizations that support terrorist actions and international drug traffickers. These sanctions may change over time and are based on U.S. foreign policy and national security goals.

The OFAC list (Specially Designated Nationals and Blocked Persons) is updated frequently and is sent out to every bank in the nation. The goal of the OFAC list is to prevent banks from opening accounts, wiring money and/or lending money to any of the designated persons or organizations. Banks are to check the names of current and potential customers against this list prior to performing any of the services listed above.

First published on BankersOnline.com 11/21/2005