FinCEN Issues Final Rule to Require Customer Identification Program, Anti-Money Laundering Program, and Beneficial Ownership Requirements for Banks Lacking a Federal Functional Regulator

  • Source: fincen.gov

Treliant Takeaway:

While many banks lacking a Federal functional regulator may already have some form of Anti-Money Laundering program in place, Treliant recommends that banks have an independent third party conduct a gap analysis to confirm compliance with FinCEN’s requirements, in order to mitigate legal/regulatory and reputational risk.  Treliant’s team of subject matter experts can help banks to confirm their compliance with FinCEN requirements.  Our integrated team of programmatic, data, and technology experts can provide the advisory and assurance expertise you need and we will right-size your program to your bank’s specific risk profile.

Article Highlights:

The Financial Crimes Enforcement Network (FinCEN) today issued a September 14, 2020 final rule that requires minimum standards for anti-money laundering programs for banks lacking a Federal functional regulator.  The final rule also extends customer identification program and beneficial ownership requirements to those banks.

Banks without a Federal functional regulator are currently required to comply with certain BSA obligations, including filing suspicious activity and currency transaction reports.  FinCEN anticipates that banks lacking a Federal functional regulator will be able to leverage existing policies, procedures, and internal controls required by other statutory and regulatory requirements to fulfill the obligations set out in the final rule.  Among other banks lacking a Federal functional regulator, the rule applies to private banks, non-federally insured credit unions, and certain trust companies.

Banks lacking a Federal functional regulator will have 180 days from the day the final rule is published in the Federal Register to be in compliance.

Author

Ross Marrazzo

Ross Marrazzo is Managing Partner of Treliant. He is also responsible for the firm’s Corporate & Regulatory Compliance and Global Financial Crimes Compliance services areas. Ross has over 34 years of domestic and international experience in the design, oversight, and assessment of corporate and regulatory compliance, Anti-Money Laundering/Bank Secrecy Act,…