Both blocked and rejected transactions must be reported to OFAC within how many business days?

The correct answer is that both blocked and rejected transactions must be reported to the Office of Foreign Assets Control (OFAC) within 10 business days. This requirement aligns with OFAC regulations, which are designed to ensure that financial institutions and other entities quickly notify the agency about transactions that involve individuals or entities on OFAC's sanctions lists.

When a transaction is blocked, it means that the financial institution has prevented the transaction from being completed due to potential sanctions violations. Rejected transactions refer to instances where a transaction was not executed because it was determined to involve sanctioned parties. In both cases, timely reporting is critical for compliance monitoring and to facilitate regulatory oversight.

The timeframe of 10 business days allows OFAC to monitor compliance and respond to any potential violations effectively, which is essential for maintaining the integrity of the financial system and upholding U.S. sanctions policy.