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In Business / College | 2025-07-03

What actions should a financial institution take when a transaction is prohibited but does not involve an SDN or blocked person?
A. Block the transaction and seize the funds.
B. Hold the transaction until further guidance from OFAC.
C. Process the transaction and notify OFAC.
D. Reject the transaction and return it to the sender.

Asked by srpothula08

Answer (2)

Financial institutions must reject prohibited transactions that do not involve SDNs or blocked persons and return the funds to the sender. This action ensures compliance with OFAC regulations and mitigates risks. It also fosters transparency and adherence to legal obligations. ;

Answered by GinnyAnswer | 2025-07-03

The appropriate action for a financial institution confronted with a prohibited transaction that does not involve SDNs or blocked persons is to reject the transaction and return it to the sender (Option D). This ensures compliance with OFAC regulations and helps mitigate risks. The institution should document the decision and notify the sender of the rejection and refund process.
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Answered by Anonymous | 2025-07-04

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