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FinCEN’s Temporary Relief for Autorenewable CDs and Loans

May 30, 2018

Authors

Barry Hester

FinCEN’s Temporary Relief for Autorenewable CDs and Loans

May 30, 2018

by: Barry Hester

In a unique administrative ruling under delegated “exceptive” authority, on May 16, 2018 FinCEN issued relief from its new beneficial ownership requirements through at least August 9, 2018, for “certain financial products and services that automatically rollover or renew (i.e., certificate of deposit (CD) or loan accounts) and were established before the Beneficial Ownership Rule’s Applicability Date, May 11, 2018.”

FinCEN acknowledged in its notice that “some covered institutions have not treated such rollovers or renewals as new accounts and have established automatic processes

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Regulators Update BSA/AML Exam Manual Sections

May 15, 2018

Authors

Barry Hester

Regulators Update BSA/AML Exam Manual Sections

May 15, 2018

by: Barry Hester

Just in time for the effective date of FinCEN’s Customer Due Diligence (CDD) and Beneficial Ownership Rules, on May 11, 2018 the Federal Financial Institutions Examination Council (FFIEC) published updates to its Bank Secrecy Act/Anti-Money Laundering Examination Manual.  The FFIEC is an interagency body comprised of representatives of the U.S. Federal Reserve Board, the FDIC, OCC, CFPB, NCUA, and state banking regulators.  The agencies’ changes (1) replace existing CDD sections of the manual and (2) add new Beneficial Ownership overview and exam procedures sections, in each case corresponding to the new CDD and Beneficial Ownership requirements.

The publication of this new content was announced through separate press releases by

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Introducing BCLP and Barry Hester

April 9, 2018

Authors

Robert Klingler

Introducing BCLP and Barry Hester

April 9, 2018

by: Robert Klingler

Jonathan and I discuss two major deals for our us: the formation of Bryan Cave Leighton Paisner (BCLP) and the return or Barry Hester in this latest episode of The Bank Account.

Bryan Cave Leighton Paisner LLP is the result of the mergers of historically U.S.-based Bryan Cave LLP and historically U.K.-based Berwin Leighton Paisner LLP.  As a truly global firm with over 1,600 lawyers operating literally around the clock, we believe Bryan Cave Leighton Paisner is well positioned to serve

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FinCEN Provides Relief to CDD Obligations for Existing Customers

April 5, 2018

Authors

Barry Hester

FinCEN Provides Relief to CDD Obligations for Existing Customers

April 5, 2018

by: Barry Hester

The Financial Crimes Enforcement Network (FinCEN) published long-awaited additional Frequently Asked Questions on April 3, 2018 (the “Guidance”) relating to its Customer Due Diligence (CDD) Rule, which FinCEN promulgated pursuant to the Bank Secrecy Act (the “CDD Rule”).  This comes at a time when most covered institutions are in the final stages of implementing plans to comply with the CDD Rule by its May 11, 2018 compliance applicability date.  FinCEN previously published technical amendments to the Rule on September 29, 2017

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FinCEN Proposes Broad AML Obligations for Investment Advisers

August 31, 2015

Authors

Jeff Ziesman

FinCEN Proposes Broad AML Obligations for Investment Advisers

August 31, 2015

by: Jeff Ziesman

As part of its continuing but slow expansion of the types of financial institutions that are subject to anti-money laundering (AML) obligations under the Bank Secrecy Act and USA PATRIOT Act, FinCEN proposed on August 25, 2015, to require certain investment advisers to establish and maintain AML programs and file suspicious activity reports (the Proposed Rules).  The Proposed Rules go further than FinCEN’s 2002 and 2003 proposals for investment advisors, which generally were limited to proposing AML program requirements only, without additional suspicious activity reporting and certain other record keeping requirements.

In explaining its rationale for the Proposed Rules,

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FinCEN’s Beneficial Owner Proposal Conflicts with FCRA

April 2, 2015

Authors

Bryan Cave

FinCEN’s Beneficial Owner Proposal Conflicts with FCRA

April 2, 2015

by: Bryan Cave

On August 4, 2014, FinCEN released proposed rules that would require banks and certain other financial institutions to identify the “beneficial owners” of their business entity customers and to verify the identity of each such beneficial owner (the “Proposal”).  If the Proposal results in final rules that are substantially identical to the proposed rules, financial institutions might be unable to comply without violating the federal Fair Credit Reporting Act (“FCRA”).

Under the Proposal, “beneficial owners” would generally include at least one manager of the entity and each individual owning 25% or more of the entity.  This could mean up to

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How Well Do I Know You – Let Me Count the Ways

August 21, 2014

Authors

Jerry Blanchard

How Well Do I Know You – Let Me Count the Ways

August 21, 2014

by: Jerry Blanchard

FinCen Updates Customer Due Diligence Requirements

Modern entertainment, whether it be books or movies,  oftentimes grapple with the issues of “who are you?” As a story line develops the audience is kept guessing as characters turn out to have different motivations or identities than what they were first perceived to have. Political thrillers oftentimes involve agents of shadowy groups behind which the true masterminds operate. How much effort will it take to reach the truth? FinCEN has recently come out with some proposed guidance that addresses this issue in the context of the legal entities that financial

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FinCEN Announces September 28 Customer Due Diligence Roundtable; Releases Prepared Remarks from July Hearing

September 20, 2012

Authors

Bryan Cave

FinCEN Announces September 28 Customer Due Diligence Roundtable; Releases Prepared Remarks from July Hearing

September 20, 2012

by: Bryan Cave

FinCEN recently announced that it would hold the second in a series of outreach events on the advanced notice of proposed rulemaking (ANPR) published in March 2012 on customer due diligence (CDD) and beneficial ownership requirements for financial institutions. FinCEN is seeking further clarification on a number of issues and to engage with representatives from affected financial institutions on these issues at the roundtable discussion. 

The roundtable discussion is scheduled for September 28, 2012 at the U.S. Commodity Futures Trading Commission offices in Chicago, Illinois. The morning session (9:00 a.m. to 12:00 p.m. Central time) is for futures

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FinCEN Seeks Comments on Potential New Customer Due Diligence and Beneficial Ownership Regulations

March 1, 2012

Authors

Bryan Cave

FinCEN Seeks Comments on Potential New Customer Due Diligence and Beneficial Ownership Regulations

March 1, 2012

by: Bryan Cave

On February 29, 2012, FinCEN released an advance notice of proposed rulemaking on customer due diligence and beneficial owners, proposing to make a customer due diligence obligation explicit for ALL customers (to “clarify, consolidate and harmonize” the federal banking agencies’ expectations) and extending the requirement to collect (and possibly verify) beneficial owner information for most or all customers as well.

FinCen’s advance notice of proposed rulemaking (ANPRM), seeks public comment on a range of questions regarding the development of a customer due diligence (CDD) regulation that would “(i) codify, clarify, consolidate, and strengthen existing CDD regulatory requirements

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FinCEN Outreach to Community Banks

October 20, 2009

Authors

Bryan Cave

FinCEN Outreach to Community Banks

October 20, 2009

by: Bryan Cave

FinCEN has announced a new outreach effort targeted at depository institutions under $5 billion in total assets to determine how these institutions comply with the Bank Secrecy Act and the specific compliance hurdles they confront.   If your institution has assets under $5 billion, please see our client alert about FinCEN’s outreach proposal.

As part of its ongoing outreach efforts, FinCEN is now seeking to engage smaller to moderate size depository institutions who are working to implement the four pillars of the Bank Secrecy Act regulatory regime: (1) policies, procedures and internal controls; (2) designation of a compliance officer; (3)

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