FinCEN Issues Frequently Asked Questions Regarding Customer Due Diligence Requirements for Financial Institutions

General information

On April 3, 2018, the Financial Crimes Enforcement Network (FinCEN) issued a second set of FAQs to assist financial institutions in complying with the revised rules under the Bank Secrecy Act to clarify and strengthen customer due diligence (CDD) requirements for banks and other financial services entities. The rules, which are effective on May 11, 2018, contain explicit CDD requirements and include a new requirement to identify and verify the identity of beneficial owners of legal entity customers, subject to certain exemptions.

If you have any questions, please contact your dedicated central point of contact or Financial Institution Supervision and Credit liaison at the Federal Reserve Bank of San Francisco or one of the contacts named in the guidance.