OFAC Verification on Cashier's Checks?

Your institution is not required by law or regulation to check the OFAC list before you conduct any type of transaction, whether it's selling official checks or sending wire transfers. Instead, you are prohibited from doing business with anyone on the OFAC list.

If you check the list for the names of the parties to an official check it's because you believe the risk is appreciable relative to the time and expense of checking the list and you want to avoid it.

If you don't, it's because you don't believe the risk is appreciable and you are perfectly willing to accept it in exchange for the fee you charge on an official check. (Your regulator may feel free to criticize your judgment on this particular point.)

First published on BankersOnline.com 1/16/06