USA PATRIOT Act: http://www.justice.gov/archive/ll/highlights.htm AND http://www.fincen.gov/statutes_regs/patriot/

The main purpose of the Patriot Act is to deter and punish terrorist acts in the United States and around the world, to enhance law enforcement investigatory tools, and other purposes, some of which include:

As a business owner, it is important that you understand the impact of regulations imposed by the Office of Foreign Asset Control-  OFAC. This office administers and enforces economic sanctions programs primarily against countries and groups of individuals, such as terrorists and narcotics traffickers. OFAC enforces the blocking of assets and trade restrictions to accomplish foreign policy and national security goals.

The U.S Department of Treasury has put together a list of Frequently Asked Questions regarding this issue. We have attached a link to this document, US Department of Treasury Answers on OFAC, for you to review: https://www.treasury.gov/resource-center/faqs/Sanctions/Pages/faq_general.aspx

Most of us became familiar with OFAC after the terrorist attacks of 911. But OFAC has existed, in various forms since the 19th century. The office, created by the U.S. Department of Treasury, has had many changes in name and structure and officially became The Office of Foreign Asset Control in 1950. Today, OFAC enforces economic and trade sanctions against targeted countries, individuals, and entities operating in illicit activities throughout the world that may present or have presented a threat to the security of the United States. This ongoing process can only be effective as its controls and surveillance measures in place. Every dealer must be aware of the different sanctions administered by OFAC.

Dealers can contact the office electronically, by phone, or by mail at the following mailing address:

As a dealer it is important to understand the role you play in helping this Office conduct its ongoing operations. As a dealer you are part of its enforcement efforts, OFAC publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and narcotics traffickers designated under programs that are not country-specific. Collectively, such individuals and companies are called “Specially Designated Nationals” or “SDNs.” Their assets are blocked and U.S. persons are generally prohibited from dealing with them, unless granted a special exception from OFAC or by legislation.

Dealers are required to check all customers against this SDN List without exception. This step can be tedious, as the list is very long. Further, OFAC continuously updates the list. This means that dealers have to check every customer against the list, even returning customers who may not have appeared before. You can download a copy of the list from the U.S Department of Treasury. www.treasury.gov

For dealers, there are a number of software providers offering the service of running and verifying names against the most updated list. Using a service provider allows the dealer to focus on the dealership while also maintaining compliance. Further, software providers also run customer names against other lists issued by the FBI, Office of Trade Controls, and the Office of Bureau and Industry, etc.

It is not necessary to ask for identification if the customer is just looking around. A large number of customers will come into a dealership and ask general questions. Regularly these customers may make several trips before deciding on which vehicle to purchase or lease. The dealer does not ask for identification unless a purchase is about to happen. When a dealer asks for identification in order to run a credit check or to complete the Buyer’s Order the customer has committed to a purchase. The dealers should now make every effort to check the buyer’s name against the OFAC’s SDN List. Dealers using software vendors for this procedure will have access to other lists, as mentioned previously.

The following steps should be taken when running a name through the List:

Take the customer’s full name as it appears on the customer’s  proof of identification. (ie. Driver’s license, passport, etc.)

Look for the name on the list.

Ensure that the name on the identification and the name on the list are compatible. Name for an individual/ vessel/corporation. If the type of party does not match, you do not have a match.

   Ex: The name on the driver’s license says Joey Richard, but the name on the list is for Joey Richard Funny Man Inc. This is not a match.

Ensure that the name does not result in a partial match.

   Ex: The name on the Driver’s license says Joey Richard, but the name on the list says Joey Brown Richard.

If you feel you have a sufficient match (full name, address, date of birth, place of birth), you may call:

(1) Your DSN List software service provider,

(2) OFAC Hotline 1-800-540-6322,

(3) USA Patriot Act 1-800-949-2732,

(4) Debarred Parties List 202-663-2700.

If you have denied a transaction based on information obtained from any of the entities listed above, you must call the OFAC Hotline.

What if you don’t check customer names against the list?

Any Dealer skipping this step is breaking the law. President Bush signed Executive Order 13224 in 2001, barring US nationals from conducting business with individuals or entities on the SDN List. Penalties for non-compliance range from $50,000 to $10 million, and/or imprisoned up to 30 years. This is serious.