This month, after 90-day and then 30-day extensions, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) permanently extended a rare ruling granting exceptive relief related to an ambiguous, potentially burdensome piece of new beneficial ownership obligations for legal entity customers that took effect in late July.
The original final rule, released in May of 2016, requires financial institutions to capture beneficial ownership details on certain legal entity customers down to the 25 percent level, or more on a “risk-based basis,” and list a top-level person who exercises managerial control. Institutions can chiefly rely on what companies provide about their flesh-and-blood owners on a self-certification form.
The crux of the ruling has to do with bank products that renew annually and, under the new rule, would require a bank to reach out and get verbal, written or email confirmation that beneficial ownership details haven’t changed. To read more, click here. To read ACFCS coverage of the original 90-day exception, click here.
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- PenFed Employees Saw Anti-Money-Laundering Compliance Gaps - November 1, 2018