FFIEC Issues New Customer Due Diligence and Beneficial Ownership Examination Procedures

May 2018
FFIEC Issues New Customer Due Diligence and Beneficial Ownership Examination Procedures

The Federal Financial Institutions Examination Council (FFIEC) today issued new examination procedures on the final rule, “Customer Due Diligence Requirements for Financial Institutions,” issued by the Financial Crimes Enforcement Network (FinCEN) on May 11, 2016.

These examination procedures apply to banks, savings and loan associations, savings associations, credit unions, and branches, agencies, and representative offices of foreign banks.

The new examination procedures replace those in the current “Customer Due Diligence — Overview and Examination Procedures” section of the FFIEC’s Bank Secrecy Act/Anti-Money Laundering Examination Manual. In addition, a new overview and examination procedures were developed for the beneficial ownership requirements for legal entity customers.

The FFIEC member agencies created these procedures in close collaboration with FinCEN and the U.S. Department of the Treasury.

FinCEN’s 2016 final rule clarifies customer due diligence requirements and also includes a new requirement for covered financial institutions to identify and verify the identity of beneficial owners of certain legal entity customers. Banks and other covered financial institutions must comply with this rule beginning on May 11, 2018.

 

Attachments:

Customer Due Diligence - Overview and Examination Procedures

Beneficial Ownership for Legal Entity Customers - Overview and Examination Procedures

 

Agency Contact Name Phone
Federal Reserve Darren Gersh 202.452.2955
FDIC Greg Hernandez 202.898.6984
NCUA Ben Hardaway 703.518.6333
OCC William Grassano 202.649.6870
SLC Matt Longacre 202.803.8091

 

Last modified on
09/23/19