Summary outlines final 'due diligence' rule under BSA

May 31, 2016 -- A summary of the "customer due diligence" final rule - outlining effective dates and scope of the rule – has been published by NASCUS.

The rule, issued by the Financial Crimes Enforcement Network (FinCEN) May 5, includes the requirement that financial institutions – including credit unions, banks, brokers or dealers in securities, mutual funds, futures commission merchants, and introducing brokers in commodities – “collect and verify the personal information of the real people (also known as beneficial owners) who own, control, and profit from companies when those companies open accounts.”

The final rule also amends existing Bank Secrecy Act (BSA) regulations to clarify and strengthen obligations of these entities.

The final rule becomes effective July 11; covered financial institutions must be in compliance with the by May 11, 2018.

The summary outlines the key provisions of the final rule, including: “beneficial ownership” (including its definition); exemptions for financial institutions and from the “beneficial owner requirements” in the final rule; and the “four core elements” of a CDD program presented in the rule.


NASCUS final rule summary: ‘customer due diligence’

Final Rule from the May 11 Federal Register

Treasury May 5 release on final rule (and other topics)