FinCEN Ending AML Exemption for Financial Institutions Without Federal Regulator

FinCEN has published [85 FR 57129] a Final Rule in a recent Federal Register that will remove the anti-money laundering program exemption for banks that lack a Federal functional regulator, including, but not limited to, private banks, non-federally insured credit unions, and certain trust companies.

The  recent press release indicates that the final rule requires minimum standards for anti-money laundering programs for banks without a Federal functional regulator to ensure that all banks, regardless of whether they are subject to Federal regulation and oversight, are required to establish and implement anti-money laundering programs, and extends customer identification program requirements and beneficial ownership requirements to those banks not already subject to these requirements.

The rule will be effective November 16, 2020 but carries a compliance date of March 15, 2021.

CUNA’s CompBlog has additional information.

Source:  FinCEN/CUNA