The proposed customer due diligence rule that was released July 30 was notable for what it didn't require, perhaps even more than for what it did. In its advance notice of proposed rulemaking, the Financial Crimes Enforcement Network (FinCEN) outlined its then-potential plans for regulations meant to shine daylight on the murky world of corporate ownership by tasking banks with identifying beneficial owners. But the notice of proposed rulemaking (NPRM) did not: Â· Make banks responsible for verifying that the individuals who claim corporate ownership are the actual owners, although it does require verification of their identities consistent with existing...
U.S. officials will formally propose this month a long-planned rule that would require banks to identify the owners of their corporate clients, according to an Office of Management and Budget schedule.
A U.S. Treasury Department proposal to toughen customer due diligence obligations for banks would increase compliance costs while providing only minimal benefit to law enforcement, according to industry comment letters.
The Financial Action Task Force is weighing whether to ask jurisdictions to loosen their privacy laws and require companies to retain data on their owners, among other changes to the group's standards.
A government watchdog's call for stronger anti-money laundering controls on a federal bank bailout program could result in a "significant step up" in compliance duties for companies involved, say consultants.