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Compliance Departments Gear Up for US Customer Due Diligence Rule
By Daniel Bethencourt
printSeveral of the world's largest financial institutions have moved quickly to limit risks posed by their corporate clients in the six months since U.S. officials finalized a long-anticipated customer due diligence rule, while smaller lenders have treaded a rougher path towards implementation. The measure, first pitched by the U.S. Treasury Department in 2012, establishes a fifth "pillar" in anti-money laundering compliance, explicitly requiring covered institutions to take steps to identify persons owning 25 percent or more of firms that open accounts from May 2018 onward, then verify the accuracy of data they subsequently obtain from those deemed higher-risk. Motivated by...
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