Compliance: Beneficial owner relief extended thru Sept. 8

The Treasury’s Financial Crimes Enforcement Network (FinCEN) has extended the Beneficial Ownership Rule’s limited exception for rollover and/or renewal of certain accounts for an additional 30 days. It was scheduled to expire Aug. 9, and now will be in place up to and including Sept. 8.

Under FinCEN’s customer due diligence rule that became effective May 11, covered financial institutions are required to obtain information on the beneficial owners of a legal entity that opens a new account for each new formal banking relationship established, even if the legal entity is an existing customer.

The relief issued by FinCEN grants credit unions relief from the beneficial ownership requirements for Legal Entity member accounts that automatically renew or rollover, such as certain term share accounts and loans.


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