The hundreds of millions of dollars in costs likely to be incurred by financial institutions implementing an expected customer due diligence rule will be offset by the regulation's benefits, U.S. officials said Wednesday. In a preliminary regulatory impact assessment, the Treasury Department's Financial Crimes Enforcement Network (FinCEN) said that its proposed requirements for banks and other covered financial firms to collect beneficial ownership information from corporate accountholders would likely cost the companies between $700 million and $1.5 billion through 2025. Over the first year of the proposed rule's implementation, some 29,000 financial institutions would collectively spend between $95 million to...
U.S. officials will soon finalize rules clarifying customer due diligence obligations and requiring financial institutions to identify the beneficial owners of corporate accounts, according to the White House budget office.
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