NAFCU is offering a webinar today to help credit unions prepare for the Financial Crimes Enforcement Network’s (FinCEN) customer due diligence (CDD) rule before next week’s compliance deadline. NAFCU’s Ann Kossachev will moderate the webinar.
The CDD rule, which goes into effect May 11, requires credit unions to identify and verify the beneficial owner(s) of legal entity accounts, subject to certain exceptions. Previously, a credit union was only required to know the identity of each of its legal entity customers but not necessarily its beneficial, natural person owners.
Beneficial owners include each natural person who directly or indirectly has a 25 percent or more equity interest in the legal entity customer, as well as individuals that have “significant responsibility to control, manage or direct a legal entity customer,” such as a CEO, COO or CFO.
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