The Treasury Financial Crimes Enforcement Network’s (FinCEN) customer due diligence (CDD) rule became effective, and both CUNA and FinCEN have resources available for credit unions.
FinCEN has issued two sets of frequently asked questions, one in July 2016 and one in April of this year. In addition, the Federal Financial Institutions Examination Council (FFIEC) issued new CDD examination procedures, with the update found in the CDD section of FFIEC’s Bank Secrecy Act/Anti-money Laundering Examination Manual Friday.
The final rule clarifies and strengthens customer due diligence requirements for financial institutions and other entities, and adds a new requirement for these covered financial institutions to identify and verify the identity the natural persons (known as beneficial owners) of legal entity customers who own, control and profit from companies when those companies open accounts.
Specifically, the rule requires covered financial institutions to establish and maintain written policies and procedures that are reasonably designed to
Other resources include: