If you own a car dealership, your business must conduct regular Office of Foreign Assets Control (OFAC) checks to ensure car dealer OFAC compliance. The first step is understanding the role of this office and how it applies to your business. The YouTube video explores when you should conduct tests.


Video Source

What Are OFAC Checks and When to Conduct It

The OFAC is a division of the US¬†Department of the Treasury and enforces and administers US economic and trade sanctions. It develops the Specially Designated Nationals (SDN) list. These checks ensure that US businesses aren’t engaging in business activities with the individuals, companies, or countries on this list. There are hefty fines, penalties, or reputational damage for companies who are in non-compliance.

These checks prevent companies from unwittingly supporting terrorism, money laundering, or other illicit activities. OFAC has regulations that require compliance from US businesses. These regulations extend to car dealerships. If your dealership engages in financial activities such as selling cars, conduct regular checks. The frequency of the checks differs according to the size and nature of the business.

Car dealer OFAC compliance should be a priority for your business. Compliance is required by law. If your dealership engages in financial activities, such as selling cars, ensure you conduct checks as part of customer due diligence.

.

Leave a Reply