I came across an article this morning that talks about VinSolutions new Advanced Desking module for use by automative sales managers. Apparently the new module allows for multiple deal scenarios for the customer without having to open several applications to do so. It also allows for the ability to roll payments and amounts financed.

The article goes on to say, “The Advanced Desking module, as stated by the company, enables sales managers to run OFAC checks in compliance with the Office of Homeland Security, as well as running multiple credit reports.” Ummmmm, what was that?

OFAC checks I assume means a check to ensure that the automobile transaction is not being conducted with a blocked person under the the Specially Designated Nationals (“SDN”) list or any other persons with whom it is prohibited to engage in transactions with under U.S. sanctions regulations. OFAC, as many readers of this blog know, stands for the Office of Foreign Assets Control. So wouldn’t these checks be done to comply with the Office of Foreign Assets Control as opposed to the Office of Homeland Security?

Also, Offices of Homeland Security operate at the state level, my guess here is that either the company or the author who wrote the article were thinking that OFAC falls under the authority of the Department of Homeland Security. However, it does not. OFAC is part of the Department of Treasury.

So they made a mistake, why am I making a fuss about it? It all goes back to a conversation that I had last week with an OFAC investigator who shall remain nameless. Outside of very small group of attorneys, and perhaps corporate compliance personnel, noone really knows what OFAC is, what they do, or even how to follow their regulations. OFAC is so opaque that it is actually counterproductive to their mission. To fully implement and execute their regulations on their own would require vast resources that I doubt the U.S. government wants to expend to carry out these regulations. Therefore, I believe OFAC should seek to work closer and communicate more clearly and freely with the private sector in order to carry out their mission. This is, in my opinion, the best and most efficient way for OFAC to enforce the sanctions regulations.

I am not sure whether the slip up in the article came from the company or whether the author just misquoted the company’s statement. Either way it speaks to the fact that there is not enough information available on OFAC and as I have stated that needs to change in order for them to stay relevant.