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Enterprise Management Software Aids OFAC Compliance US and other world government crackdowns on money-laundering by terrorist organizations, rogue states and drug traffickers have increased the responsibility of banks to conduct enhanced due diligence. Failing to properly conduct the enhanced due diligence required by law can result in huge fines and sanctions against financial institutions. Enterprise management software for OFAC compliance can help banks avoid making costly due diligence errors. The Office of Foreign Assets Control enforces US policy regarding economic and trade sanctions against certain nations, as well as individuals and groups involved with terrorism, drug trafficking, economically disruptive activity and illegal arms sales. Complying with OFAC regulations regarding blocked entities is an important part of the enhanced due diligence required of financial institutions. Lists published by OFAC such as the Specially Designated Nationals (SDN) List, is regularly updated with organizations and people barred by OFAC. OFAC compliance software that can work with OFAC and other government databases to check client information against lists of persons and organizations banned by OFAC can greatly assist financial institutions in avoiding running afoul of the law. Since names are published from different sources and recorded differently, enterprise management software for OFAC compliance must utilize a flexible search algorithm that not only recognizes different variants or misspellings of names, but also reduces the number of false positives to a minimum. To accomplish this, OFAC Compliance Software tools use various search techniques such as Fuzzy Logic searches, and then assign a score based on their matching proximity. Lower scores are automatically discarded. Also, to minimize false positives the OFAC Software must be capable of processing different types of records. This requires that specific search logic for different transaction formats such as Fedwire, SWIFT, ACH, or Letters of Credit, be implemented that search and appropriately combine the data fields within these transactions. Proper OFAC compliance is a high stakes matter for banks and financial institutions. BNP Paribas, France’s largest bank, recently set aside $1.1 billion in anticipation of a pending settlement with OFAC regarding violations or regulations. OFAC penalties have increased greatly since 2009, when the US Congress increased statutory minimum penalties for OFAC violations from $11,000 to $250,000 per violation, or twice the value of the underlying transaction. OFAC examines several factors when assessing fines, including size and sophistication of the entity, reporting procedures and awareness of senior management. Good enterprise management software can help financial institutions avoid OFAC compliance issues and allow them to quickly self-report when unintentional violations occur. Ocean Systems Banking Technology makes anti-money laundering software that helps banks and financial institutions stay on the right side of the law. This includes OFAC compliance software. With Ocean Systems software, the risk of non-compliance can be avoided and mitigated.


Company Bio Ocean Systems Banking Technology (https://www.oceansys.com/index.aspx) provides banking compliance technology that helps financial institutions successfully follow the many complicated regulations created by the US and other governments. The company has an established track record in providing flexible, adaptable software solutions that keep pace with the ever-evolving regulatory obligations of financial institutions. For more information, please visit us at http://www.oceansys.com

Enterprise Management Software Aids OFAC Compliance  

https://www.oceansys.com/products.aspx?showprd=OFAC-EDD%20SERVER OFAC compliance violations can have big consequences for banks and financia...

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