OFAC Screening involves what?

• A. Verifying credit ratings.
• B. Recording customer complaints.
• C. Checking parties against OFAC sanctions lists.
• D. Auditing cash handling procedures.

Answer: (C)

OFAC screening involves checking whether a customer, counterparty, or beneficial owner appears on the sanctions lists published by the U.S. Treasury’s Office of Foreign Assets Control. The goal is to prevent engaging with blocked or designated individuals or entities and to stop prohibited transactions before they happen. This requires comparing names and other identifying details against the sanctions lists using screening tools, applying risk-based reviews for potential matches, and escalating as needed when exemptions or licenses might apply. This protects the institution from penalties and reputational damage and supports lawful international business. Verifying credit ratings relates to credit risk, recording customer complaints to service and regulatory feedback, and auditing cash handling to internal controls—none of these are about sanctions screening.