Financial institutions have rushed to implement midcourse corrections and fielded numerous questions from skeptical clients and staff alike in the two months since the U.S. Treasury Department’s customer due-diligence rule took effect, say sources. The CDD rule, which has encountered resistance from anti-money laundering professionals in the six years following its initial proposal, requires financial institutions to identify any individual who owns at least 25 percent of a legal entity that opens an account on or after May 11, as well as one individual who exercises significant control over the legal entity. A month before the rule took effect, the...
Financial institutions in the United States will not be required to identify the beneficial owners of firms that hold certain automatically renewing accounts for at least the next three months, the head of the U.S. financial intelligence unit told lawmakers Wednesday.
The U.S. Treasury Department’s customer-due diligence rule promises to not only impact anti-money laundering obligations when it takes effect next month, but sanctions and anti-bribery compliance as well, say sources.
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.
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