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Wachovia Pays $11,000 to Settle Charges It Failed to Block Payment to Terrorist
By Matt Squire
printWachovia Bank paid the U.S. Treasury's Office of Foreign Assets Control (OFAC) $11,000 to settle charges that it improperly rejected a payment bound for a designated terrorist. Wachovia in Philadelphia rejected a payment destined for a "Specially Designated Global Terrorist," on or about October 29, 2004, instead of blocking the payment, according to an enforcement action issued by OFAC on November 13. Wachovia voluntarily disclosed the matter, OFAC said. Under OFAC rules, financial institutions must block any payments intended for specially designated entities. This involves seizing the funds and reporting the block to OFAC. In rejecting a payment, an institution...
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