On May 5, 2016 FinCEN issued its final rule on beneficial ownership and customer due diligence. This rule was issued to strengthen customer due diligence requirements for covered institutions. The rule included a new requirement to identify and verify the identities of beneficial owners of legal entity customers (LEC). A beneficial owner was deemed as any individual who owns 25 percent or more of the equity interests of a LEC and a single individual with […]
Tag: FinCEN
SAR CHANGES
The Financial Crimes Enforcement Network (FinCEN) announced changes to the Suspicious Activity Reports Electronic Data Fields on February 2, 2017. On January 26, 2018 FinCEN issued an Important Notice to E-Filers that announces an update to the Suspicious Activity Report (SAR). The 2018 announcement states, ” the FinCEN Suspicious Activity Report (SAR) available on the BSA E-Filing System will be updated to adhere to the changes defined in Federal Register notice posted on February 2nd, […]
Why Comply With 2018 CDD Requirement Now
The OCC entered into a Consent Decree with Business Bank of Texas on July 20, 2016 after the OCC initially announced its intentions to issue a Cease and Desist (C&D) Order. Previously, we issued a blog on the Beneficial Ownership FAQs (posted August 18, 2016) which stated that May 11, 2018 was the applicability date for the following requirements: Identification and Verification of Legal Entity Customers; and Requirement to add a new “fifth pillar”: Understand […]
FINCEN BENEFICIAL OWNERSHIP Q’S AND A’S.
On July 19, 2016, FinCEN issued FIN-2016-G003 with the following subject line: Frequently Asked Questions Regarding Customer Due Diligence Requirements for Financial Institutions (“FAQ”) FinCEN’s stated purpose in issuing these FAQs was to assist covered financial institutions in understanding the scope of the Customer Due Diligence (CDD) requirements for financial institutions which were published in the Federal Register on May 11, 2016 and which become fully effective on May 11, 2018. The May, 2016 CDD […]
FINAL FINCEN BENEFICIAL OWNERSHIP RULES
On May 11, 2016 FinCEN is publishing a 227-page final rule under the Bank Secrecy Act to clarify and strengthen customer due diligence requirements for banks and others. The rules contain explicit customer due diligence requirements and include a new requirement to identify and verify the identity of beneficial owners of legal entity customers, subject to certain exclusions and exemptions. Covered financial institutions are not presently required to know the identity of the individuals who […]