Alert! Financial Crimes Enforcement Network: Proposed Customer Due Diligence Requirements for Financial Institutions

Webinar: ID# 1014348
Recorded CD or On-Demand
About This Course:
The Financial Crimes Enforcement Network (FinCEN) is proposing rules under the Bank Secrecy Act to clarify and strengthen customer due diligence requirements for banks.

The proposed rules would contain explicit customer due diligence requirements and would include a new regulatory requirement to identify beneficial owners of legal entity customers, subject to certain exemptions.

This rule will help prevent the use of anonymous companies to engage in or launder the proceeds of illegal activity in the U.S. financial sector. The proposed rule would clarify and strengthen customer due diligence obligations of financial institutions.

The proposed amendments would add a new requirement that these entities know and verify the identities of the real people (also known as beneficial owners) who own, control, and profit from the companies they service.

These proposed amendments represent significant enhancements to the BSA and build upon post-9/11 augmentation of the regulations designed to protect the U.S. financial system. They would make valuable information needed to disrupt illicit finance networks available to law enforcement.

The resulting increase in financial transparency would enhance the ability of financial institutions and law enforcement to identify the assets and accounts of criminals and national security threats.What You'll Learn:
  • The Four Core Elements of Customer Due Diligence

    • Identifying and verifying the identity of customers
    • Identifying and identifying and verifying the beneficial owners of legal entity customers
    • Understanding the nature and purpose of customer relationships
    • Conducting ongoing monitoring to maintain and update customer information and to identify and report suspicious transactions

  • The proposed requirement for financial institution to collect beneficial ownership in a standardize format
  • The proposed requirement that financial institutions will have to identify and verify any individual who owns 25 percent of more of a legal entity, and an individual who controls the legal entity
Alert! Financial Crimes Enforcement Network: Proposed Customer Due Diligence Requirements for Financial Institutions
or via CD or On-Demand
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