Answer:
The bank's policies and procedures for checking the OFAC list should be derived from its formal OFAC risk assessment. There are no "standard" answers as to how and when the bank should check the list as a condition of opening an account. You may be able to rationalize that your bank's risk profile combined with the presumed innocence of small children is an adequate rationale for not checking the list in this circumstance.
First published on BankersOnline.com 5/1/06