When choosing screening services have you ever wondered what the OFAC search was, and if it was really necessary to use for your company? Recent events like the tragedy in Boston have placed a lot of emphasis on America's terrorist watch list, and what it really means.
The Office of Foreign Asset Control, or OFAC is part of the U.S. Department of Treasury's Office of Terrorism and Financial Intelligence. It administers and enforces economic and trade sanctions based on national security goals against targeted foreign countries and regimes, terrorists, parties engaged with weapons of mass destruction, and other threats to the national security, foreign policy or the economy of the United States (US Department of Treasury).
So how does this search affect you and your business? In short: the list they administer and enforce tells you who and who you cannot do business with legally. The list they create of the restricted parties is known as the "Specially Designated Nationals List" (SDN), and is available on their website. A recent LinkedIn poll showed that 78% of Real Estate professionals use the OFAC search and believe it to be an important tool, while 5% used it, but didn't really know what it was, or what they were getting, and 16% did not use it in their tenant or pre-employment screening at all, or knew what it was.
While the SDN list is extensive, it is important to note that you always need to perform due diligence with it (just as with any other report you get back with tenant or employment screening), as it can return with similar names to your applicants. If you do suspect a match has been found there are hotlines to call to verify that information, depending on what list you received the information from.
Most OFAC searches will return with information regarding the applicant at the top: name, address, filing state, social security number, birth date, birth country, and a best name, followed by the databases searched. It is important that every applicant to any property, be it small, large, class A-C assets, should be screened, and in light of recent events should be searched through the OFAC Terrorist Watch/Patriot Act Database.
Not only is it important to screen every tenant or employee applicant, it is also important to know and completely understand what you are receiving in your reports. It is also good practice to perform due-diligence before making any final conclusions.