Compliance and Watch List Screening
USA PATRIOT Act - Under Section 326 of the Act, financial institutions must institute a Customer Identification Program (CIP) that contains reasonable risk-based procedures to:
- Collect identifying information about customers opening an account
- Verify that customers are who they say they are to the extent reasonable and practicable
- Maintain records of customer information and methods used to verify their identity
- Determine whether the customer appears on any list of suspected terrorists or terrorist organizations
OFAC - The Office of Foreign Assets Control maintains a list of Specially Designated Nationals and Blocked Entities (SDNs).
This list represents individuals and entities that are owned, controlled by, or acting for or on behalf of the governments of
the targeted countries or are associated with international drug trade or terrorism. Financial institutions, securities firms,
and insurance companies are prohibited from dealing with SDNs, and obligated to block or “freeze” property and payment of
any funds transfers or transactions, and to report all blockings to OFAC.
Watch Lists - Institutions may elect to perform additional screening against the Politically Exposed Persons (PEP) list and several other Watch Lists to help identify applicants that may require additional monitoring.
Solution
Distinguishes high-risk individuals from profitable customers with the end goal of opening more good accounts and reducing costly write-offs.
This service identifies applicants with a prior history of fraud and/or account abuse while also performing identity verification and compliance list screening.
Additional Resources and Links
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