We identified a blocked person linked to a hosted wallet on our platform. Do we have to freeze the wallet and report it, or can we just reject future transfers?
Our compliance team found that a hosted wallet on the platform appears to be linked to a person on the sanctions lists. The engineering team suggested simply refusing future transactions and leaving the existing wallet untouched. That sounds cleaner operationally, but I am worried it may not match what OFAC expects when blocked property is already under our control.
What I need is the actual OFAC rule for digital currency. If the wallet has to be blocked and reported within a specific time window, then passive refusal is not enough and we need to change how the incident is handled immediately.
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