|They hope they do not get caught, or that nothing happens which will
bring financial ruin or put them jail. These are good, hard working
people who feel at times that the government is doing everything
they can to stop them from selling a vehicle.
them huge amounts of money, and then sometimes don’t get it all right either. For example, I was at a dealership
not long ago in Connecticut. The subject of checking a customer against the SDN (Specially Designated
Nationals) list came up. I had asked how they did their check. He told me that their Credit Reporting Agency did it
for them. I then asked “even those customers that are paying cash?” He then told me his lawyer told him that it
was only required if the deal was financed. “Not true.” I said. The law requires that all customers, business and
organizations, have to be checked before the vehicle is delivered. It does not matter if is cash or credit. The next
the requirements are from the Patriot Act. He is right. It does say in the Patriot Act “all financial
transaction”. Then I pointed out to him Executive order 13224 which states “all business
dealing” regardless if they are cash or financed. The lawyer said he never heard of that and
hung up the phone. A few weeks later when I returned to the same dealership, they were
checking all customers. The lawyer found out I was right and advised his client to check all
deals, but I never got a thank you note from the lawyer.
|While we are on the subject of OFAC and the SDN list, I heard this just the other day. I was at a
meeting about software solutions for compliance issues. The individual who was giving the
presentation said, “The OFAC requirement is a gray area. If we went by the letter of the law, a
dealer would have to check every person who comes in to buy a windshield wiper.” He is right about
most of what he said, but the OFAC requirement is not “gray” at all. The government does not
expect you to check each customer who buys a windshield wiper out of your parts department.
However, it does expect you to check someone out who comes in, or tries to order on
line, or by phone if they are making “unusual” requests. A person wanting to buy 100 car
batteries is an unusual request. That person should be checked. The government expects us to
use common sense when it comes to this example. When it comes to selling a vehicle, it is black
and white. All persons, companies and organizations that purchase a vehicle before they take
possession of it, need to be checked.
Want more information about OFAC and the SDN list? Click on this link:
Want to see the SDN list? http://www.treas.gov/offices/enforcement/ofac/sdn/t11sdn.pdf
|SUPERIOR DEALER SOLUTIONSsm
|Michael is one of the nation's leading Compliance Experts.
He is an agent for Curran EasyCare, serving New England
Automotive Dealerships. They offer insurance service
coverage, RV coverage, driver care, GAP coverage and
Safeguard Rule which are part of the Gramm-Leach-Bliley Act. Then there is the Red Flag Regulation which
went into effect January 1st of this year. All dealerships have to be in compliance by November 1st, 2008. First
the privacy Rule. When a dealership arranges financing for a customer they must provided a privacy notice. In
that notice they must tell the customer/consumer why they are collecting the information and who they are
sharing it with. In addition, they must give the customer/consumer the right to “opt out” of the sharing of certain
third parties. A third party could be someone like an advertising agency that you use. It has to be clear on the
privacy notice that they can “opt out” if they so desire. If they do opt out, that does not mean you cannot share
their private information with affiliated parties. Each dealership needs to have a written Privacy Rule company
policy. It is important to note that the privacy notice must be given and signed before information is collected.
Most dealerships do it when they take the credit applications.
Want more on the Privacy Rule click here: http://www.ftc.gov/bcp/conline/pubs/buspubs/glbshort.shtm
organization to learn the right process for your company and be professional and consistent about it. NADA offers
a ton of information to its members on how to comply. Check your states NADA chapter to see what they can
offer. I know that the Texas independent Automobile Dealers Association has some outstanding help with
compliance issues. In addition, there are many software companies that aid the dealer. DealerTrack has come up
with some great solutions to OFAC and Red Flags Compliance. Both done in one simple step while the customer
is in F&I. MenuVantage offers OFAC compliance and is coming out with Red Flag solutions soon. Patriotdealer.
com offers OFAC and Red Flag Solutions. There are other companies out there too. I have just enough space to
give you a few, and these are my top picks.
For more information on any of these you can click here:
For MenuVantage: http://menuvantage.com/
For PatriotDealer: http://patriotdealer.com
it comes to
customers to the
bad guy list.