Q Can the credit union deduct service charges from an OFAC-blocked account?
A Generally, yes.
In most cases, Office of Foreign Assets Control (OFAC) regulations contain provisions to allow a financial institution to debit blocked accounts for normal service charges. Each set of program regulations describes the provisions.
The charges must be in accordance with a published rate schedule for the type of account maintaining the fund. But credit unions should check with OFAC before imposing charges because sanction program rules vary.
Currency Transaction Reports
Q Does a credit union need to file a Currency Transaction Report (CTR) when staff know a member places more than $10,000 in a safe deposit box?
A In this instance, no—because there was no “transaction.” Credit unions must file CTRs for currency transactions greater than $10,000 conducted by, through, or to the institution. But a “transaction” means a “deposit, withdrawal, exchange, or other payment or transfer” – so those rules don’t apply here.If the member’s actions appear suspicious, on the other hand, the credit union should consider filing a Suspicious Activity Report (SAR).
Q Does a match on the Financial Crime Enforcement Network’s (FinCEN) 314(a) list trigger a SAR filing?
A No. Section 314(a) of the USA Patriot Act allows a law enforcement agency to solicit information from financial institutions via a FinCEN information request. The names that appear in the request are already persons under investigation by federal law enforcement authorities. So a match on the list wouldn’t trigger a SAR filing. Unless noted otherwise in the request, the credit union isn’t required to take any further action after reporting any positive matches to FinCEN.
Visit CUNA’s compliance blog—“CompBlog”—at cuna.org. Email firstname.lastname@example.org with questions or ideas for blog posts, and keep the conversation going with your peers on COBWEB—CUNA’s compliance listserv.