Who Needs to be Checked Against OFAC?

Question:

When issuing cashier's checks, does the party the check is being issued to have to be checked against OFAC?

Answer:

There is no banking "pulse point" where you are required to check the OFAC list before you conduct a transaction. You are not required to check the list when you sell a cashier's check, but you are not required to check the list when you open an account or send a wire transfer either. You do it because you are risk averse, not because it is a legal requirement.

First published on BankersOnline.com 10/11/10