New Regulation: FinCEN Customer Due Diligence (CDD) Rule, Effective May 11th
The Customer Due Diligence (CDD) Final Rule, issued by the Financial Crimes Enforcement Network (FinCEN) in 2016, will take effect this Friday, May 11, 2018. The Rule codified many of the existing regulatory expectations already associated with a robust anti-money laundering due diligence program and established a fifth pillar, which requires financial institutions to identify and verify the beneficial ownership of “legal entity customers”.
FinCEN, “Customer Due Diligence Requirements for Financial Institutions; Correction,” Federal Register, September 28, 2017, https://www.federalregister.gov/documents/2017/09/28/2017-20777/customer-due-diligence-requirements-for-financial-institutions-correction
FinCEN, “Frequently Asked Questions Regarding Customer Due Diligence Requirements for Financial Institutions,” July 19, 2016, https://www.ffiec.gov/bsa_aml_infobase/documents/FAQs_for_CDD_Final_Rule_%287_15_16%29.pdf
