For cashier's checks, OFAC checks are required for which parties?

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Multiple Choice

For cashier's checks, OFAC checks are required for which parties?

The key idea is where sanctions screening point sits in cashier’s check transactions. OFAC checks focus on the party initiating the transaction and funding the instrument. When a cashier’s check is issued, the bank is guaranteeing payment from the purchaser’s funds, so the risk center is the purchaser’s identity and eligibility to transact under sanctions rules. The payee is simply the recipient on the instrument, and screening the payer at issuance is the primary control to prevent moving funds to or through sanctioned parties. Therefore, OFAC checks are required for the purchaser only.

The key idea is where sanctions screening point sits in cashier’s check transactions. OFAC checks focus on the party initiating the transaction and funding the instrument. When a cashier’s check is issued, the bank is guaranteeing payment from the purchaser’s funds, so the risk center is the purchaser’s identity and eligibility to transact under sanctions rules. The payee is simply the recipient on the instrument, and screening the payer at issuance is the primary control to prevent moving funds to or through sanctioned parties. Therefore, OFAC checks are required for the purchaser only.

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