Archive

Go to:

August 2018
SMTWTFS
1234
567891011
12131415161718
19202122232425
262728293031
< Jul Sep >
Leaguer Email Subscription

You are not currently subscribed. Click Subscribe below to receive the Leaguer email.

FinCEN Extends to Sept. 8 Limited CDD Exemption
Thursday, August 9, 2018 6:50 AM

The Financial Crimes Enforcement Network's limited 90-day exemption for covered financial institutions from obligations under its customer due diligence (CDD) rule has been extended to Sept. 8.

The exemption pertains to the rule's beneficial ownership requirements for certain products established before May 11 that automatically rollover and renew. The CDD rule requires credit unions to identify and verify the beneficial owner(s) of legal entity accounts, subject to certain exceptions.

Previously, a credit union was only required to know the identity of each of its legal entity customers but not necessarily its beneficial, natural person owners. Beneficial owners include each natural person who directly or indirectly has a 25 percent or more equity interest in the legal entity customer, as well as individuals that have "significant responsibility to control, manage, or direct a legal entity customer," such as a CEO, COO, or CFO.