Due Diligence and Ongoing Monitoring

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  • 1.  OFAC

    This message was posted by a user wishing to remain anonymous
    Posted 08-09-2022 08:15 PM
    This message was posted by a user wishing to remain anonymous

    Hello All,

    We run an OFAC check on our new and existing vendors when we conduct our due diligence. My question is, more precisely our internal audit:
    What is the risk of not running an OFAC check (we forgot) on a Credit Reporting Agency vendor?  We only ran OFAC on CEO.

    Your feedback will be greatly appreciated.


  • 2.  RE: OFAC

    Posted 08-18-2022 10:44 AM

    Without having all the facts related to the specific credit reporting agency, I believe the primary risk here is that you can't demonstrate that you sufficiently examined the company. And that would likely be an audit finding. Depending on your specific industry, you may have also violated regulatory requirements. When it comes to your internal audit, they may also find that your processes are not satisfactory or consistent and ask you to make improvements.

    Remember consistency is key, and your processes must be designed to ensure that all processes and activities are conducted consistently and correctly. Those are my thoughts, but I would love to hear from other members.




  • 3.  RE: OFAC

    Posted 08-19-2022 01:33 PM
    All third parties doing business with your firm need to be reviewed for OFAC/PEP sanctions prior to Contracting... 
    That because, in some cases, just signing a contract with a sanctioned entity may expose you to non-compliance. 

    I think the only risk you have of not running an OFAC check; is if they entity is actually on the sanctions list. 
    In that case you are open to fines for violating OFAC... but if the entity isn't no the sanctions list. Your risk is I/A or Examiners give you a finding. 
    You can't cure something that happened or didn't happen in the past. But you'll need to take some corrective action to demonstrate that you won't do it again. :-) 

    Good luck

    ------------------------------
    Bradley Martin
    bradleymartin.net
    ------------------------------



  • 4.  RE: OFAC

    Posted 08-22-2022 07:53 AM
    Thank you Bradley and Hilary.
    Greatly appreciate your inputs.
    Original Message