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Industry Letters Outline Concerns on Planned Beneficial Ownership Rules
By Colby Adams
printA 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. In an advance notice of proposed rulemaking (ANPR) pitched in February, the department's Financial Crimes Enforcement Network (FinCEN) revealed four measures that it may codify into a rules-based customer due diligence (CDD) program for banks, including a requirement that institutions identify the beneficial owner of every corporate account. Credit unions and financial institutions in general "are especially concerned about the potential expansion of the 'beneficial ownership' requirements," said the Washington,...
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