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Under Office of Foreign Assets Control (OFAC) rules, a financial institution managing blocked funds:
Suggested Answer: D
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OFAC regulations require that blocked funds must be placed into an interest-bearing account, held separately, and reported to OFAC. This does not require preauthorization from OFAC.
However, no debits or credits may occur without OFAC authorization, including:
* settling standing bills or checks (A),
* charging interest or loan/corporate card fees (C),
* deducting credit-card service charges (B).
Only OFAC can authorize movement or use of blocked property.
OFAC blocked property rules for interest-bearing retention.
Prohibition on debits, credits, and unauthorized transactions involving blocked funds.
26 comments · newest first
DA
Dante
6 months ago
D sounds reasonable. Interest-bearing accounts are common practice.
RE
Reynalda
6 months ago
C is tricky. Charging interest without a license? Not safe.
CA
Carolynn
6 months ago
I disagree. B seems right. No service charges allowed.
RI
Rima
6 months ago
I think option A makes sense. Standing checks need to be paid.
SH
Shannon
7 months ago
D) seems too easy, are they really allowed to do that without OFAC's say-so?
HA
Han
7 months ago
B) is definitely a no-go, service charges are prohibited.
CR
Cruz
7 months ago
Wait, can they really charge interest from a frozen account? Sounds off.
MI
Minna
7 months ago
Totally agree with A! Makes sense.
BR
Brock
7 months ago
A) is correct, they can debit for checks.
KA
Kanisha
7 months ago
Wait, so I can't use my blocked credit card? That's just cruel. I'm going with C.
CA
Casie
8 months ago
Haha, I bet the OFAC agents are real fun at parties. Anyway, I think B is the correct answer.
HA
Harrison
8 months ago
C is the way to go. Gotta keep that interest rolling in, even on a frozen account!
MA
Malika
8 months ago
D sounds right to me. The funds need to be in an interest-bearing account.
LU
Lucia
9 months ago
I'm pretty sure the answer is B. No deductions from a blocked account without OFAC approval.
ED
Edda
9 months ago
I thought that funds in a blocked account couldn't just be placed in an interest-bearing account without OFAC's approval, but I need to double-check that.
WE
Werner
9 months ago
I feel like charging interest from a frozen account might require some sort of OFAC license, but I can't recall the specifics.
DA
Dalene
9 months ago
I think I came across a similar question about service charges on frozen accounts, and it seemed like they were generally prohibited.
YA
Yaeko
9 months ago
I remember studying that OFAC has strict rules about managing blocked funds, but I'm not sure if they allow debiting for standing checks.
IZ
Izetta
10 months ago
B seems like the safest bet here. The question is specifically asking about prohibited actions, so that's likely the correct answer.
BE
Bettyann
10 months ago
Okay, let me think this through step-by-step. I need to identify the key details about OFAC rules and apply them to each option.
SH
Shawn
10 months ago
Ugh, I'm not sure about this one. I'll have to guess and hope for the best.
VE
Venita
10 months ago
I'm pretty confident that the answer is B. The question clearly states that the financial institution is "strictly prohibited" from deducting service charges.
TO
Tori
10 months ago
Hmm, this seems tricky. I'll need to carefully review the OFAC rules to determine the right approach.
GE
Gerald
4 months ago
I’m leaning towards option B. It seems the safest choice regarding service charges.
FA
Fanny
4 months ago
Agreed! OFAC rules can be complex. Which option do you think is the most accurate?
RE
Refugia
6 months ago
This is definitely tricky! I think we need to look at the specifics of each option.