Which term refers to payments that are prohibited under OFAC regulations?

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Multiple Choice

Which term refers to payments that are prohibited under OFAC regulations?

Under OFAC rules, payments involving designated or blocked parties are prohibited. These restricted payments are called blocked transactions. Banks must screen payment messages and stop any transfer that would reach or originate from a sanctioned person, entity, or blocked property unless an OFAC license or other authorization applies. The broader idea of economic sanctions describes the overall program, while sanctioned countries are the targets, and beneficiary bank identification is a screening step rather than the term for prohibited payments.

Under OFAC rules, payments involving designated or blocked parties are prohibited. These restricted payments are called blocked transactions. Banks must screen payment messages and stop any transfer that would reach or originate from a sanctioned person, entity, or blocked property unless an OFAC license or other authorization applies. The broader idea of economic sanctions describes the overall program, while sanctioned countries are the targets, and beneficiary bank identification is a screening step rather than the term for prohibited payments.

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