Daniel P. Stipano discussed "Customer Due Diligence rule update" at the National Association of Federal Credit Unions webinar
The Financial Crimes Enforcement Network's (FinCEN) Customer Due Diligence rule has received a significant update. Covered financial institutions will now be required to identify and verify the identity of beneficial owners of legal entity customers and implement procedures to form customer risk profiles and monitor accounts for suspicious activity. This includes changes in customer or beneficial ownership information—the "Fifth Pillar." Implementation of the updated FinCEN rule will cause significant changes to credit union policies and procedures, as well as vendor oversight and relevant staff training.
This webinar provided a baseline understanding of the rule's requirements, implementation challenges, practical advice on working with examiners and meeting your compliance obligations.