FinCEN Expands AML Requirements for Banks Lacking a Federal Functional Regulator | Practical Law

FinCEN Expands AML Requirements for Banks Lacking a Federal Functional Regulator | Practical Law

The Financial Crimes Enforcement Network (FinCEN) issued a final rule that subjects banks lacking a Federal functional regulator to obligations under the Bank Secrecy Act (BSA) in addition to their current BSA obligations. The final rule requires minimum anti-money laundering (AML) program standards for these banks. It also extends customer identification program (CIP) and beneficial ownership requirements to these banks.

FinCEN Expands AML Requirements for Banks Lacking a Federal Functional Regulator

Practical Law Legal Update w-027-4582 (Approx. 3 pages)

FinCEN Expands AML Requirements for Banks Lacking a Federal Functional Regulator

by Practical Law Finance
Published on 16 Sep 2020USA (National/Federal)
The Financial Crimes Enforcement Network (FinCEN) issued a final rule that subjects banks lacking a Federal functional regulator to obligations under the Bank Secrecy Act (BSA) in addition to their current BSA obligations. The final rule requires minimum anti-money laundering (AML) program standards for these banks. It also extends customer identification program (CIP) and beneficial ownership requirements to these banks.
On September 14, 2020, the Financial Crimes Enforcement Network (FinCEN) issued a final rule that subjects banks lacking a Federal functional regulator to obligations under the Bank Secrecy Act (BSA) in addition to their current BSA obligations (such as filing suspicious activity and currency transaction reports). The additional obligations are:
  • Minimum anti-money laundering (AML) program standards.
  • Customer identification program (CIP).
  • Beneficial ownership requirements.
The banks affected by the final rule include private banks, non-federally insured credit unions, and certain trust companies.
The final rule adopts in its entirety FinCEN's proposal in an August 25, 2016 notice of proposed rule-making, but establishes a later deadline for compliance by affected banks.
The final rule is effective November 16, 2020, and affected banks must comply by March 15, 2021.