Regulatory AlertsJoint Fact Sheet on Bank Secrecy Act Due Diligence Requirements for Charities and Non-profit Organizations
The Board of Governors of the Federal Reserve System, FinCEN, and other federal agencies issued this joint fact sheet to clarify how financial institutions should apply risk-based customer due diligence to charities and non-profit organizations. The regulators explicitly state that the charitable sector does not present a uniform or unacceptably high risk of money laundering or terrorist financing, and banks are not required to implement unique additional due diligence steps for these customers. This guidance reaffirms that banks may provide services to non-profits while managing risks commensurate with the specific risks presented by each customer.
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