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.
Pending requirements that U.S. financial institutions more thoroughly vet their accountholders may especially challenge broker dealers, some of which are designing new systems to scrutinize investment advisers and others who control omnibus accounts and pooled investment vehicles, say sources.
The Financial Industry Regulatory Authority will begin sharing more details from its examinations with brokerages and other firms later this year to clarify its expectations for complying with anti-money laundering protocols and managing risk, an official said Thursday.
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