For compliance with the Bank Secrecy Act and USA PATRIOT Act, retail banks perform minimal list screening and monitoring of existing customer portfolios, often only using one list source such as the Office of Foreign Assets Control (OFAC). Banks perform this screening and monitoring in several different ways:
Manually pulling the OFAC list from the U.S. government website
Pulling the OFAC list with a credit report
Using list screening software
Regardless of how this is performed, the screening and monitoring of new accounts and portfolios poses big challenges to retail banks. It’s a resource-intensive task that requires time, money and manpower. Also, as a “minimum” requirement, it does little to help identify other major transgressions such as money laundering, drug trafficking and fraud that target today’s financial institutions.