Regulatory Alerts2018-09-07
Exceptive Relief from Beneficial Ownership Requirements for Legal Entity Customers of Rollovers, Renewals, Modifications, and Extensions of Certain Accounts
The Financial Crimes Enforcement Network grants covered financial institutions permanent exceptive relief from the Beneficial Ownership Rule's requirement to identify and verify beneficial owners when specific accounts are rolled over, renewed, modified, or extended. This relief applies to certificates of deposit, certain loans, commercial lines of credit, credit cards, and safe deposit box rentals, provided the changes do not require underwriting review and approval. While exempt from re-verification during these lifecycle events, institutions must continue to comply with all other anti-money laundering obligations and collect beneficial ownership information at the initial account opening.
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