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Daniel P. Stipano quoted in ACAMS article, “FinCEN may permanently exempt certain CDs and loans from CDD rule”

ACAMS

Daniel P. Stipano

Daniel P. Stipano was quoted on May 17, 2018 in an ACAMS article, “FinCEN may permanently exempt certain CDs and loans from CDD rule,” which discussed the announcement by Ken Blanco, director of the U.S. Treasury Department’s Financial Crimes Enforcement Network, that financial institutions will not be required to identify the beneficial owners of firms that hold certain automatically renewing accounts for at least the next three months. Blanco said, “The bureau will exempt existing loans and certificates of deposit, or CDs, that roll over at regular intervals from customer due-diligence requirements until August 9 and possibly beyond that date, pending further review. Financial services industry representatives have repeatedly voiced concerns that collecting ownership data on long-term CD and loan accounts would not only place an unnecessary burden on banks, but weigh FinCEN and other federal regulators down with banal information.”

Stipano added, “Recent guidance is somewhat helpful in clarifying expectations, but also creates a practical problem. With a rollover you may not have face-to-face contact with the client for years … you can inform them, but what if they are unresponsive?”

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