[amcgarvey]

I have seen the argument go both ways so I was curious what the thoughts were on whether ongoing 314(a) monitoring was required on the Beneficial Owners with the upcoming BSA rule. I feel the whole intent behind this rule was to make sure we were keeping an eye on the people who actually owned/managed the business.

I just am curious what everyone is doing in regards to monitoring.

Topic

[susan costonis]

FinCEN gave this guidance in the FAQ’s issued on July 15, 2016:
Question 24: Section 314(a) Requirements
Q: Do covered financial institutions now have additional obligations under Section 314(a) for beneficial ownership information?
A: FinCEN does not expect the information obtained under the CDD Rule to add additional 314(a) requirements for financial institutions. The regulation implementing section 314(a) does not require the reporting of beneficial ownership information associated with an account or transaction matching a named subject in a 314(a) request. Covered financial institutions are required to search their records for accounts or transactions matching a named subject and report whether a match exists using the identifying information provided in the request.
THIS IS A LINK TO THE FAQ’s (FIN-2016-G003)from 2016: https://www.fincen.gov/resources/statutes-regulations/guidance/frequently-asked-questions-regarding-customer-due-diligence
I am not aware of any additional FinCEN guidance on this issue. As with all BSA issues, it’s a good idea to ask your primary regulator for any additional guidance.
FinCEN will be releasing exam procedures for CDD at a future date (no known date has been mentioned); there may be additional 314(a) updates in the procedures.
(Additional FAQ’s were issued on April 3, 2018; FIN-2018-G001 at: https://www.fincen.gov/sites/default/files/2018-04/FinCEN_Guidance_CDD_FAQ_FINAL_508_2.pdf )

Posted by Susan Costonis

[NLD7319]

With respect to monitoring, our BSA Department will be obtaining a list of new deposit accounts and new/renewed loans for legal entity customers each month and selecting a sampling of accounts to review to ensure the CBO was obtained and that the form is complete (no omissions of required data) and that it was reviewed by the appropriate persons.

We already have monitoring procedures for CDD.

[NLD7319]

WE are also verifying that the beneficial owners are entered into the appropriate fields on our core system to ensure that the names are compared to the OFAC list on a nightly basis.

[Author]

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