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Daniel P. Stipano quoted in an ACAMS article, “FinCEN ‘leaves door open’ for tougher beneficial-ownership expectations: Sources”


Daniel P. Stipano

Daniel P. Stipano was quoted on April 5, 2018 in an ACAMS article, “FinCEN ‘leaves door open’ for tougher beneficial-ownership expectations: Sources,” which discussed the CDD rule and the surge of questions that have circulated regarding whether and when banks and other institutions should attempt to identify beneficial owners who own less than 25-percent of a legal entity seeking to open an account. FinCEN released a list of FAQs to help clarify the rule. The article stated, “FinCEN sought to shed more light on the rule Tuesday in a 24-page FAQ, noting that firma ‘will meet their beneficial ownership obligations' by observing the 25-percent mark but ‘may choose, however, to collect such information on natural persons who own a lower percentage.’ The FAQs issued Tuesday precede publication of a revised examination manual by the Federal Financial Institutions Examination Council incorporating the CDD rule. The FFIEC plans to publish the new manual before May 11, reported in August."

Stipano added, “FinCEN’s latest take on the threshold largely validates the approach many banks have already taken, but may leave the door open for a more aggressive approach in the field. It is, unfortunately, somewhat ambiguous. The real issue is how examiners are going to interpret this.”