OFAC Compliance.jpg

OFAC Compliance


OFAC Compliance.jpg

As an automotive dealer, finance is one of the most important parts of your business. However, it also comes with multiple rules and regulations. One of these is the rules governed by the Office of Foreign Asset Control (OFAC) of the federal government. This department restricts who can get access to our financial system. All companies that deal with finance have to be aware of the policies and abide by them.

In particular, OFAC compliance is very important because OFAC has created a list of individuals which cannot get loans, insurance or access to credit from US companies. Most of these people are suspected terrorists, drug dealers, money launderers, corrupt foreign government officials and other people suspected of crimes. While the odds are slim that the next customer that walks in the door is on the OFAC list, you must still be sure to comply with the regulation.

To comply, simply run a quick scan of the list using a customized software or search function. In fact, many loan software systems automatically check the list during the approval process to make sure that the client is not on the OFAC list.

The key is that you have a record of doing the search for each individual client. With the record, you can prove that you are upholding the regulation if you are ever audited.  That will prevent various fines and penalties from being issued on you.

Vanguard Dealer Services is the leading automotive consulting company around finance and insurance. The firm has helped dealers around the country improve their financial practices in order to save time and money. For more information, please contact us

Feel free to check out our FREE E-Book that discusses the importance of the relationship between your dealership and the Office of Foreign Assests Control.


Relationship Between Your  Dealership and OFAC


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