Whether you have experienced a “hit” on the OFAC list or you just want to know how to handle a hit if it were to occur within your dealership, we can help you understand and even avoid the experience altogether.
What is a “Hit” on the OFAC List?
It is first important to understand what a “hit” on the OFAC list is. These hits usually occur when a customer is applying for a loan or when a potential employee applies for a job. The Office of Foreign Assets Control (OFAC) was created to keep companies from doing business with blocked parties such as drug traffickers, money-launderers, criminals, terrorists, and some countries. Dealerships and auto loan companies are required to check that customers or prospective employees are not on this list before continuing to do business with them. If they are on this list, there are required steps that must be followed.
Steps to Handle a “Hit” on the OFAC List
- Verify “hit”– Confirm that the “hit” is against the OFAC’s Specially Designated National list or targeted countries. There’s a possibility that the person is “hitting” for another reason such as “Control List,” “CIA,” “Blocked Officials File,” etc.
- Compare Names – If the “hit” is confirmed to be against OFAC’s SDN list, the next step is to evaluate the quality of the hit. This can be done by comparing the name on the paperwork with the name on the SDN list. If the name on one of the forms is an individual while the other name listed is an organization or company, then the match is not valid. If only part of the names match, such as just the last name but not the first name, the match is not valid.
- Compare Remaining Information – If the full name matches on both the completed form and the list, then the next step is to compare the remaining information included with the SDN entry which will usually include a full name, address, nationality, passport, tax ID, birth place, date of birth, former names, and aliases. If any of this information is missing from the paperwork completed by the individual, then ask for the information and then compare against the SDN entry. If there are several similarities or exact matches, the next step is to call the OFAC compliance hotline (1-800-540-6322) to report a possible or exact match. The OFAC will direct you on next steps once they further screen the individual. If the individual is cleared, they will authorize the sale or the hiring of the employee. If the individual appears to be a valid match, they will direct you on what to do next. No matter what the outcome, it’s important to keep detailed records of the process as well as a copy of the OFAC report.
With the services we provide at MOTiiV, we can help you be prepared for a “hit” or even avoid the process altogether by handling these situations for you. We offer exceptional human resource compliance and management services as well as top-of-the-line lead generation services. Get in touch with us today to see how we can help you prevent potential loss, protect customer information, and maintain compliance with both federal and state regulations. Learn more about how MOTiiV can help.