Car dealerships, particularly those situated in Dallas, Texas, are increasingly acknowledging the pivotal role of OFAC (Office of Foreign Assets Control) compliance. In a recent query, a compliance officer sought clarity on the existence of a dollar limit for OFAC checks, highlighting the dealership group’s commitment to regulatory adherence.
The expert response sheds light on the nuanced nature of car dealer OFAC compliance. Legally, there is no specific dollar limit prescribed for OFAC checks.
The primary requirement is to refrain from engaging in business with individuals listed on the Specially Designated Nationals (SDN) list maintained by OFAC.
While there is no stringent dollar threshold mandated by law, a practical approach is recommended. Routine services like oil changes may not necessitate OFAC checks, but significant transactions such as car sales, financing, yacht or jet purchases, and home acquisitions should undergo meticulous scrutiny. The absence of a clear, bright-line limit underscores the need for a balanced strategy, wherein significant transactions receive thorough attention while routine services are handled pragmatically.
For car dealerships navigating the complexities of compliance, understanding the dynamics of car dealer OFAC compliance ensures a judicious and effective approach to meet regulatory standards.