FinCEN Issues Expected CDD Rule Without New Verification Requirement

By Kira Zalan and Colby Adams

In a long anticipated move, the U.S. Treasury Department Wednesday proposed to require a broad range of financial institutions to identify the beneficial owners of their corporate accounts. Under an 88-page rule pitched by the department's Financial Crimes Enforcement Network (FinCEN), banks, mutual funds, securities brokers and dealers, futures commission merchants and introducing brokers in commodities would be required to identify persons holding a 25 percent or more interest in corporate accounts. In response to industry concerns, the department scrapped consideration of a possible plan suggested in FinCEN's February 2012 advanced notice of proposed rulemaking that would have obligated financial...