Regulatory Alerts2014-08-04
Added
Customer Due Diligence Requirements for Financial Institutions
The Financial Crimes Enforcement Network proposes rules under the Bank Secrecy Act to clarify and strengthen customer due diligence requirements for banks, brokers or dealers in securities, mutual funds, and futures commission merchants and introducing brokers in commodities. The proposal introduces a new regulatory requirement for covered financial institutions to identify and verify the beneficial owners of legal entity customers, subject to certain exemptions. It also adds explicit requirements for understanding the nature and purpose of customer relationships and conducting ongoing monitoring as components of each institution's core anti-money laundering program.