FinCEN adopted a final rule that will make current AML, Customer Identification Program ("CIP") and beneficial ownership rules equally applicable to all types of banks.
As previously covered, the final rule will, among other things:
- amend the provision that exempts certain financial institutions from the requirement to establish an AML program; and
- amend the definition of "covered financial institution" to specify that non-federally regulated banks would be subject to the beneficial ownership requirements in the Customer Due Diligence Rule.
The final rule will go into effect 60 days after publication in the Federal Register, and banks that lack a Federal functional regulator must be in compliance with the rule 180 days after its publication.
Commentary
The more than 500 banks in the United States that are not currently required to maintain a federally compliant AML program have six months to put one in place. FinCEN estimates that the new requirements will impact approximately 297 state-chartered non-depository trust companies, 228 non-federally insured credit unions, 12 non-federally insured state-chartered banks and savings and loan or building and loan associations, 1 private bank, and 29 international banking entities.
Primary Sources
- FinCEN Press Release: FinCEN Issues Final Rule to Require Customer Identification Program Anti-Money Laundering Program, and Beneficial Ownership Requirements for Banks Lacking a Federal Functional Regulator
- FinCEN Final Rule (Unpublished Draft): Financial Crimes Enforcement Network; Customer Identification Programs, Anti-Money Laundering Programs and Beneficial Ownership Requirements for Banks Lacking a Federal Functional Regulator
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