Regulatory Alerts2016-05-11
Added
Customer Due Diligence Requirements for Financial Institutions
The Financial Crimes Enforcement Network amends 31 CFR Parts 1010, 1020, 1023, 1024, and 1026 to require covered financial institutions to identify and verify the identity of beneficial owners of legal entity customers at the time a new account is opened. The rules also explicitly mandate that anti-money laundering programs include risk-based procedures for understanding the nature and purpose of customer relationships and conducting ongoing monitoring to update customer information when relevant changes are detected. These requirements apply to banks, brokers or dealers in securities, mutual funds, and futures commission merchants and introducing brokers in commodities. Covered financial institutions must comply with these provisions by May 11, 2018.