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FinCEN Issues certain exceptions to Beneficial Ownership Rule, NCUA issues examination procedures

On May 16, 2018, the Financial Crimes Enforcement Network (FinCEN) issued a 90-day limited exceptive relief to covered financial institutions from the obligations of the Beneficial Ownership Rule for Legal Entity Customers (Beneficial Ownership Rule) for certain financial products and services (i.e., certificate of deposit or loan accounts) that were established before the Beneficial Ownership Rule’s Applicability Date, May 11, 2018. FinCEN issued the 90-day limited exception in order to determine whether, and to what extent, a further exception would be appropriate for such products and services. The exception expired on August 9, 2018.

FinCEN then extended the limited exception for an additional 30 days, up to and including September 8, 2018, from the obligations of the Beneficial Ownership Rule for rollover or renewal of certain financial products and services (i.e., certificate of deposit or loan accounts) that were established before May 11, 2018, to further consider the issue.

For questions about this exceptive relief, visit FinCEN’s Regulatory Support Section at frc@fincen.gov.

Examination Guidance for BSA Customer Due Diligence and Beneficial Ownership Compliance

On August 17, 2018, the NCUA issued examination procedures via a supervisory letter to field staff regarding customer due diligence and beneficial ownership provisions that are now part of the BSA/AML Examination. This supervisory letter provides all federally insured credit unions with the examination expectations provided to the NCUA examiners regarding the review of a credit union’s compliance with these areas. This includes new examination procedures that will be incorporated into the Federal Financial Institutions Examination Council (FFIEC) Bank Secrecy Act/Anti-Money Laundering Examination Manual.

You can access the NCUA’s supervisory letter along with other materials and information, including the NCUA’s full letter to credit unions, on the NCUA’s website.