The Benefits of OFAC Screening Software Financial institutions have a responsibility to monitor clients and activities to ensure that rules and regulations concerning money laundering and fraud are adhered to every day. Monitoring all of the different types of activity to remain in compliance can be cumbersome, which is why many banks and other financial institutions turn to OFAC screening software. What Can OFAC Screening Software Monitor? There is a range of different things that institutions must look out for, from doing business with nations that are prohibited, to doing business with individuals who are banned from conducting business in the US. Screening software can monitor all of these different types of activity to ensure that a financial institution won't face stiff penalties for any indiscretions. Some of the things that screening software looks out for include: ● Denied persons lists ● Blocked countries lists ● Defense trade controls (lists of blocked parties) By ensuring that institutions do not engage in any activities with these entities, they can steer clear of any infractions that could hurt their businesses. Why Is Screening so Important? There are many reasons to be concerned about the people banks do business with and how the money is being handled. Criminal enterprises, both foreign and domestic, may see banks as a means to funnel money from illegal activities and make the money "legitimate." Terrorists may want to launder money to mask the way they fund their own criminal activities. When banks participate—either knowingly or unknowingly—they become part of the conspiracy to commit a crime or an accessory after the fact. This is why it is critical for financial institutions to closely monitor who they do business with every day. What Should OFAC Screening Software Do? In order to get the best results, institutions need screening software that is flexible, scalable and adaptive. Here are a few things that all screening software needs to be able to do to be successful: ● Identify PEP (politically exposed persons) -- people who are either involved in politics or related to people in politics who represent a greater risk for bribery, fraud and money laundering. ● Provide a way to update lists of regulations and persons, without losing access to older databases. ● Monitor a variety of transactions, including check cashing, deposits, wire
transfers, ACH transfers, exchanges of currency, and the opening of trust accounts. The search functions used in screening software from Ocean Systems utilize complex algorithms that are able to identify key pieces of information quickly, allowing the financial institution to take the proper steps to safeguard their interests. OFAC sanctions utilize regulations, rules, and laws from the United Nations, the US government, and other regulatory agencies. If a US bank does business with a foreign nation, it must adhere not only to US laws, but also to those in the country of origin for its clients. This is a complicated task, and it simply cannot be done by hand. Screening software, when used appropriately, is the biggest key for operating within the law while still giving clients access to the services they need. Company Bio Ocean Systems, Inc. is a Miami-based company that provides OFAC screening software that meets the demands of the financial industry. With versatile, scalable systems, the software is able to handle all the most stringent requirements of OFAC sanctions.