Financial institutions have been implementing new regulations through board-approved procedures for decades. As existing regulations are revised and new regulations are published existing procedures need to be updated. Procedure Updates are designed to simplify the task of updating existing procedures, regardless of where the existing requirement is lodged. Each set of procedures are completely customizable and includes an overview of the new requirements, a regulatory citation, effective date, objective and includes operating procedures, control procedures, and audit procedures.
FinCEN issued final rules under the Bank Secrecy Act to clarify and strengthen customer due diligence requirements for banks, brokers or dealers in securities, mutual funds, futures commission merchants and introducing brokers in commodities. The rules contain explicit customer due diligence requirements and includes a new requirement to identify and verify the identity of beneficial owners of legal entity customers, subject to certain exclusions and exemptions.
The BSA customer due diligence rules for beneficial owners of legal entities were effective July 11, 2016 with compliance mandatory May 11, 2018. The 2016 Beneficial Ownership Rules Procedures Update will help your financial institution implement effective processes for daily compliance.
Published 2016. Reviewed September 2019.