Compliance and OFAC

The Braid platform integrates automated OFAC (Office of Foreign Assets Control) compliance checks to ensure your institution adheres to U.S. sanctions laws. The system continuously screens customers, ultimate beneficial owners (UBOs), and counterparties at three critical stages:

1. Onboarding – When a new customer, UBO, or counterparty is introduced to the system.

2. Transaction Flow – During any financial transaction to catch potential risks before the transaction is processed.

3. Daily Monitoring – The system re-screens all entities each day to ensure ongoing compliance as sanctions lists are updated.

OFAC Compliance Dashboard

The OFAC dashboard is a central place to view the results of all screenings performed across your customer base. It contains key details such as screening results, entity information, and any alerts requiring review.

Screen Breakdown

• ID: Each screening instance is assigned a unique identifier for tracking.

• Created: This shows the date and time when the screening was performed.

• Entity: Displays the name of the individual or entity being screened.

• Entity Type: Specifies whether the entity is categorized as:

• Individual – For personal accounts or individual customers.

• Business – For business or corporate accounts.

• Counterparty – For entities involved in transactions with your customers.

• Alert ID: A unique identifier for any potential match. If a match is detected, it’s assigned an alert ID to track the investigation.

• Status:

• No Match: The entity does not appear on the OFAC sanctions list.

• Review: The entity has triggered a potential match and requires further manual review.

Behind-the-Scenes Screening

Automated Screening at Multiple Stages

• Onboarding: When a new customer, UBO, or counterparty is added to your financial institution, the system automatically screens the entity against the OFAC list to ensure no restricted entities are onboarded.

• Transaction Flow: Each time a transaction occurs, the system checks all involved entities (customers, UBOs, counterparties) to ensure no one has become subject to sanctions. If a potential match is detected, the transaction may be flagged for review.

• Daily Monitoring: All existing entities are re-screened daily to detect any changes in their status on the sanctions list. This ensures your institution remains compliant, even if an entity's status changes after their initial onboarding.

Handling Alerts and Reviews

If an entity triggers an alert (e.g., via a transaction or the daily monitoring process), it will be marked for review:

• Alert ID 470: An example of a triggered alert, which would require manual investigation.

• Review Process: When flagged for review, the transaction or entity details are sent to your compliance team for closer examination. From here, the compliance team can decide whether to:

• Approve: Clear the entity or transaction, allowing it to proceed.

• Reject: Block the entity or transaction from further activity within the institution.

Removing Duplicated UBO Alert

Best Practices for Compliance

1. Regularly Monitor the Dashboard: Always review the OFAC dashboard for any flagged entries requiring review. Prompt action ensures minimal disruption to your operations.

2. Maintain Compliance Documentation: Keep records of all approved or rejected transactions for audit purposes. This is critical for regulatory reporting.

3. Configure Alerts and Thresholds: Customize alert thresholds to suit your institution’s risk profile. This can help reduce false positives and improve the accuracy of flagged transactions.