Which term describes accounts that allow third-party access to funds?

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Multiple Choice

Which term describes accounts that allow third-party access to funds?

Payable Through Accounts describe arrangements where funds in the account can be accessed by third parties through the bank’s processing of checks drawn on that account. In this setup, the account holder’s customers can present checks that clear against the PTA, effectively giving third parties access to the funds. This concept is distinct from OFAC screening (sanctions checks), account beneficiaries (the person entitled to funds on events like death), and foreign correspondent accounts (bank-to-bank accounts used for international activity). PTA arrangements are often higher risk from a BSA/AML perspective because the third-party access can obscure origin and control of funds, requiring closer monitoring and due diligence.

Payable Through Accounts describe arrangements where funds in the account can be accessed by third parties through the bank’s processing of checks drawn on that account. In this setup, the account holder’s customers can present checks that clear against the PTA, effectively giving third parties access to the funds. This concept is distinct from OFAC screening (sanctions checks), account beneficiaries (the person entitled to funds on events like death), and foreign correspondent accounts (bank-to-bank accounts used for international activity). PTA arrangements are often higher risk from a BSA/AML perspective because the third-party access can obscure origin and control of funds, requiring closer monitoring and due diligence.

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