Which term describes guidelines reflecting OFAC risk assessment used by a credit union?

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Multiple Choice

Which term describes guidelines reflecting OFAC risk assessment used by a credit union?

Credit Union Policies provide the guidelines that frame how OFAC sanctions risk is assessed and managed within the institution. They establish the rules for conducting screening, updating sanctions lists, determining what constitutes a hit, how to escalate and review potential matches, and how to document decisions and training. In other words, they define the everyday procedures and standards staff follow to stay compliant with OFAC requirements. Rejected Transactions are outcomes of screening, not the guiding framework. A Blocked Entity refers to an entity that is prohibited under sanctions, a status the credit union must respond to. A Positive Match is a potential hit detected during screening, not the set of guidelines itself.

Credit Union Policies provide the guidelines that frame how OFAC sanctions risk is assessed and managed within the institution. They establish the rules for conducting screening, updating sanctions lists, determining what constitutes a hit, how to escalate and review potential matches, and how to document decisions and training. In other words, they define the everyday procedures and standards staff follow to stay compliant with OFAC requirements.

Rejected Transactions are outcomes of screening, not the guiding framework. A Blocked Entity refers to an entity that is prohibited under sanctions, a status the credit union must respond to. A Positive Match is a potential hit detected during screening, not the set of guidelines itself.

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