U.S. regulators are planning to issue guidance in the coming months detailing the steps financial institutions can take to detect certain types of illicit transactions and comply with more onerous customer due-diligence requirements.
Federal banking regulators plan to publish revised standards for financial institutions to identify the ultimate owners and controllers of legal entities for whom they hold accounts well before a long-anticipated rule takes effect in May.
Several of the world's largest financial institutions have moved quickly to limit risks posed by their corporate clients in the six months since U.S. officials finalized a long-anticipated customer due diligence rule, while smaller lenders have treaded a rougher path towards implementation.
U.S. bank examiners may refrain from vigorously enforcing new corporate-transparency requirements as soon as they take effect, say regulators.
The Financial Crimes Enforcement Network issued frequently asked questions regarding customer due diligence requirements for financial institutions in connection with the rule published on May 11, 2016.
July 19, 2016
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