In which record are the OFAC Screening Indicators found for an IAT Entry?

In which record are the OFAC Screening Indicators found for an IAT Entry?

• A. IAT Entry Batch Record
• B. IAT Entry Detail Record
• C. IAT Entry Header Record
• D. IAT Entry Summary Record

Answer: (B)

The correct response regarding the location of the OFAC Screening Indicators for an IAT Entry is found in the IAT Entry Detail Record. This is significant because the IAT (International ACH Transaction) is designed to handle cross-border payments and must adhere to compliance rules, including those related to the Office of Foreign Assets Control (OFAC). The IAT Entry Detail Record contains specific information about the transaction, including the sender and receiver's details, which are crucial for compliance checks. The OFAC Screening Indicators within this record are essential for identifying whether the parties involved in the transaction are subject to any sanctions or restrictions placed by OFAC. By including the OFAC Screening Indicators in the IAT Entry Detail Record, financial institutions can effectively screen transactions for compliance during processing, which is vital for preventing unlawful transactions and adhering to regulatory standards.

The correct response regarding the location of the OFAC Screening Indicators for an IAT Entry is found in the IAT Entry Detail Record. This is significant because the IAT (International ACH Transaction) is designed to handle cross-border payments and must adhere to compliance rules, including those related to the Office of Foreign Assets Control (OFAC).

The IAT Entry Detail Record contains specific information about the transaction, including the sender and receiver's details, which are crucial for compliance checks. The OFAC Screening Indicators within this record are essential for identifying whether the parties involved in the transaction are subject to any sanctions or restrictions placed by OFAC.

By including the OFAC Screening Indicators in the IAT Entry Detail Record, financial institutions can effectively screen transactions for compliance during processing, which is vital for preventing unlawful transactions and adhering to regulatory standards.