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| FinCEN issues Bank Secrecy Act relief for Credit Unions |
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The Financial Crimes Enforcement Network (FinCEN) announced new Bank Secrecy Act regulatory relief regarding the Customer Due Diligence regulation. The Exceptive Order removes the regulatory requirement for credit unions to identify and verify information for business customers each time the business customer opens a new account.
Pursuant to FinCEN’s order, credit unions may limit identification and verification of these customers to the following circumstances:
• When a legal entity member (business) first opens an account;
• Any time afterwards when the financial institution has knowledge of facts that would reasonably call into question the reliability of beneficial ownership information previously obtained; and
• As needed based on the financial institution's own risk-based procedures for conducting ongoing due diligence.
This exceptive relief is optional, and credit unions are not required to use it. Credit unions must continue to comply with all anti-money laundering/countering the financing of terrorism requirements under the Bank Secrecy Act and its implementing regulations.
Questions can be submitted to FinCEN’s Regulatory Support Contact Form.
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