In an op-ed, former U.S. Treasury Department official Chip Poncy says that the financial community should support proposed regulations on customer due diligence.
In a long anticipated move, the U.S. Treasury Department Wednesday proposed to require a broad range of financial institutions to identify the beneficial owners of their corporate accounts.
U.S. officials will formally propose this month a long-planned rule that would require banks to identify the owners of their corporate clients, according to an Office of Management and Budget schedule.
A U.S. Treasury Department proposal to toughen customer due diligence obligations for banks would increase compliance costs while providing only minimal benefit to law enforcement, according to industry comment letters.
The White House is throwing its support behind legislation that would require U.S. companies to better identify their beneficial owners as part of a strategy to thwart international crime groups.
The Financial Action Task Force is weighing whether to ask jurisdictions to loosen their privacy laws and require companies to retain data on their owners, among other changes to the group's standards.
A government watchdog's call for stronger anti-money laundering controls on a federal bank bailout program could result in a "significant step up" in compliance duties for companies involved, say consultants.
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