Description
FinCEN issued final rules under the Bank Secrecy Act to clarify and strengthen customer due diligence requirements for banks, brokers or dealers in securities, mutual funds, futures commission merchants and introducing brokers in commodities. The rules contain explicit customer due diligence requirements and includes a new requirement to identify and verify the identity of beneficial owners of legal entity customers, subject to certain exclusions and exemptions.
The BSA customer due diligence rules for beneficial owners of legal entity customers were effective July 11, 2016 with compliance mandatory May 11, 2018. The Beneficial Ownership Certification is the model form Certification Regarding Beneficial Owners of Legal Entity Customers that financial institutions can use to identify beneficial owners of legal entity customers.
