Certified Regulatory Compliance Manager (CRCM) — Question 242

FA presents cash to the bank and seeks to wire it to his spouse, RA, in Cub A. The OFAC list identifies RA as a specially designated national. Under OFAC
Regulations, what should the bank do?

Answer options

• A. Block the transfer
• B. Conduct the transfer as requested and take no further action
• C. Conduct the transfer as requested and notify OFAC immediately
• D. Conduct the transfer only if the bank determines that Cuba is not a blocked country

Correct answer: A

Explanation

The correct answer is A because OFAC regulations require that any transactions involving specially designated nationals be blocked to prevent illegal activity. Options B and C are incorrect as they suggest proceeding with the transfer, which would violate OFAC rules. Option D is also incorrect because it implies that the bank can proceed based on the status of Cuba, but the designation of RA necessitates blocking the transfer regardless.