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FinCEN Grants Permanent Relief for Autorenewals

September 13, 2018

Authors

Barry Hester

FinCEN Grants Permanent Relief for Autorenewals

September 13, 2018

by: Barry Hester

Exercising “exceptive” relief authority, FinCEN has extended permanent relief from the beneficial ownership requirements of its new Customer Due Diligence (CDD) rule to existing autorenewing CDs and safe deposit boxes, as well as existing autorenewing commercial lines of credit and credit cards that do not require underwriting review and approval.  FinCEN reasoned that these products pose such a low risk for money laundering and terrorist financing activity that the benefits of requiring the collection of this information does not outweigh the impacts of compliance on financial institutions and their customers.  Specifically, institutions need not treat rollovers or renewals of such products as “new accounts” requiring the

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FinCEN Extends Temporary Beneficial Ownership Rule Relief for Older Autorenewing Products

August 9, 2018

Authors

Barry Hester

FinCEN Extends Temporary Beneficial Ownership Rule Relief for Older Autorenewing Products

August 9, 2018

by: Barry Hester

The temporary exception that FinCEN extended to autorenewing CDs and loans established prior to the May 11, 2018 compliance effective date of its beneficial ownership requirements was scheduled to expire on August 9, 2018.  On August 8, FinCEN published a short release in which it announced the extension of this relief through September 8, 2018.  FinCEN noted that it was providing this extension

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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

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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

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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

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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 Leighton Paisner

FinCEN’s Beneficial Owner Proposal Conflicts with FCRA

April 2, 2015

by: Bryan Cave Leighton Paisner

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 Leighton Paisner

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

September 20, 2012

by: Bryan Cave Leighton Paisner

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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