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Daniel P. Stipano Quoted in an ACAMS Article, “Banks Adopt Varying Strategies Ahead of Beneficial Ownership Rule: Sources”


Daniel P. Stipano

Daniel P. Stipano was quoted on September 1, 2017 in an ACAMS article, “Banks Adopt Varying Strategies Ahead of Beneficial Ownership Rule: Sources,” which discussed the different approaches financial institutions are taking to comply with the pending beneficial ownership rule. The article stated, “The rule, first pitched in 2012 by the department’s Financial Crimes Enforcement Network, or FinCEN, explicitly requires that covered institutions take steps to identify individuals owning 25 percent or more of firms that open accounts from May 2018 onward, then verify the accuracy of data they subsequently obtain from those deemed higher-risk. By October 2016, many, if not most, larger financial institutions were proceeding as if the requirements had already taken effect, with some upgrading their compliance programs well beyond the rule’s minimum standards.” The article also noted, “Findings from a June meeting of around 100 compliance professionals published Wednesday show that many institutions are drilling far below the 25 percent beneficial-ownership threshold mandated by FinCEN, with some using a 10 percent threshold for all customers, whatever their risk, and a handful planning to adopt a threshold as low as 5 percent for high-risk transactions.”

Stipano added, “I think that just creates a lot of confusion for the banks. The banks need to know exactly what the standard is that they can be held to so they can make a reasonable effort to comply.”

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