Certified Regulatory Compliance Manager (CRCM) — Question 239

What should a bank do when it receives a request from a customer to transfer funds to an individual in Iraq?

Answer options

• A. Conduct the transfer as requested
• B. Conduct the transfer if the individual and the financial institution are not on the SDN list
• C. Block the transfer
• D. Conduct the transfer and then notify OFAC immediately

Correct answer: B

Explanation

The correct answer is B because the bank can conduct the transfer only if the individual and the financial institution are not listed on the SDN list, which identifies entities subject to sanctions. Option A is incorrect as it does not consider the necessary checks, C is wrong because blocking the transfer without verification is not a required action, and D is incorrect since notifying OFAC after the transfer does not adhere to compliance protocols.