OFAC Training: A Look At What You Will Learn As A Business Owner

The Office of Foreign Assets Control (OFAC) directly dictates how specific financial transactions can take place. If you are the owner of a business that deals with certain types of financial transactions, such as a bank or stock trading company, you will have to be well-versed in OFAC compliance and what your role is in the business. OFAC training programs are the easiest way to educate yourself about staying compliant. Here is a look at what you will learn during your training. 

You will learn about the penalties associated with being found non-compliant. 

It can be incredibly damaging to your business if you are found to be non-compliant with OFAC regulations. It is critical that you understand the severity of penalties so you have a good grasp of why it is critical that you know how to stay compliant. Penalties for disregarding the laws can lead to fines that climb into the millions and even time in prison. You will likely examine some of the cases in which companies have been found non-compliant and what kind of penalties were enacted because of it. 

You will learn how OFAC records are supposed to be handled. 

It is not uncommon for institutions to have to keep up with records of OFAC transactions for several years. Not hanging onto these records can easily cause you to be found non-compliant. You will learn about: 

  • Which transactions have to be documented and why they have to be documented
  • How long the documented transactions must stay in your business system
  • How you should properly store and protect this important data 
  • How to prepare documents if they are requested for examination 

You will learn about prohibited OFAC transactions. 

Prohibited transactions can be defined as any transaction that goes against the terms of the laws set forth by OFAC. You will learn to recognize these transactions and learn what you should do when you suspect a prohibited transaction is in process or has already taken place. 

You will learn about trade with embargoed countries. 

Embargoed countries are countries where trade with the United States has been banned for certain reasons. In some cases, transactions involving trade with embargoed countries can still occur, but the person performing the transaction must have a license and approval to do so. You will get to know all of the fine details about these transactions and how to spot a transaction that is not happening in a legal way.