8 August, 2018
The Financial Crimes Enforcement Network (FinCEN), based in the US, has issued exceptive relief to certain financial products and services from the obligations of the Beneficial Ownership Rule for Legal Entity Customers (Beneficial Ownership Rule).
A press release states that certain financial products and services (i.e. certificate of deposit or loan accounts) that were established before the Beneficial Ownership Rule’s Applicability Date of May 11, 2018, now have an extended relief period up and including September 8, 2018.
FinCEN issued the 90-day limited exception to “determine whether, and to what extent, a further exception would be appropriate for such products and services.” The initial compliance date was set to be enforced on August 9, 2018, however FinCEN is extending the limited exception for an additional 30 days, up to and including September 8, 2018 to further consider the issue.
Earlier this year, FinCEN reminded financial institutions of the new Customer Due Diligence Requirements for Financial Institutions (CDD Rule).
The Customer Due Diligence Requirements for Financial Institutions (CDD Rule) intends to improve the financial transparency and prevent criminals and terrorists from laundering money generated from illicit activities.
Importantly, the rule adds a new requirement for these covered financial institutions to identify and verify the identity the natural persons (known as beneficial owners) of legal entity customers who own, control, and profit from companies when those companies open accounts.
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