CUNA Regulatory Comment Call

January 20, 2006

OFAC Economic Sanctions Enforcement Procedures for Banking Institutions



Sharing of Information Between OFAC and Financial Institution Regulators

Periodic Institutional Review Economic Sanctions

Factors Affecting Administrative Action

OFAC Risk Matrices

Sound Institution OFAC Compliance Programs


  1. Do you feel that the rule is consistent with the BSA/AML Manual in terms of focusing on risk?

    Yes ______ No ______

    Please explain.

  2. Do you think the factors that OFAC will take into account in making its decision as to the appropriate administrative/enforcement action are appropriate?

    Yes ______ No ______

    If not, are there other/additional factors that OFAC should take into account?

  3. Are the OFAC risk matrices included in the annex of the interim final rule helpful in terms of enabling institutions to better evaluate their compliance programs?

    Yes ______ No ______

    If not, how could the matrices be changed to provide more assistance to institutions?

  4. Is the list of sound practices relating to an institution’s OFAC compliance programs in the annex to the interim final rule useful?

    Yes ______ No ______

    If not, how could the list be made more useful?

  5. Do you agree with the definition of voluntary disclosure by an institution as well as how OFAC will look upon such disclosure (giving such cooperation due consideration in its review of possible enforcement action(s))?

    Yes ______ No ______

    If not, how should the definition of voluntary disclosure be changed?

    OFAC has specifically requested comment on the following 2 questions:

  6. How much significance, separately or collectively, should OFAC attribute in its enforcement decisions to such factors as a regulator’s assessment’s of an institution’s compliance program, an institution’s historical OFAC compliance record, an a comparison of the record to similarly situated financial institutions?

    Please explain

  7. OFAC plans to issue enforcement procedures for certain financial sector entities regulated by state government agencies but not by federal financial regulators. This sector includes entities that are similar to federally-regulated banking institutions, such as certain credit unions and banks not insured by an agency of the U.S. government. (This refers to state-chartered credit unions that are not insured by NCUA.)

  8. Other comments?

Eric Richard • General Counsel • (202) 508-6742 •
Mary Mitchell Dunn • SVP & Deputy General Counsel • (202) 508-6736 •
Jeffrey Bloch • Assistant General Counsel • (202) 508-6732 •
Lilly Thomas • Assistant General Counsel • (202) 508-6733 •
Catherine Orr • Senior Regulatory Counsel • (202) 508-6743 •