Beneficial owner relief extended through Sept. 8

The Treasury’s Financial Crimes Enforcement Network (FinCEN) has extended the Beneficial Ownership Rule’s limited exception for rollover and/or renewal of certain accounts for an additional 30 days. It was scheduled to expire Aug. 9, and now will be in place up to and including Sept. 8. Under FinCEN’s customer due diligence rule that became effective May 11, covered financial […]

The Treasury’s Financial Crimes Enforcement Network (FinCEN) has extended the Beneficial Ownership Rule’s limited exception for rollover and/or renewal of certain accounts for an additional 30 days. It was scheduled to expire Aug. 9, and now will be in place up to and including Sept. 8.

Under FinCEN’s customer due diligence rule that became effective May 11, covered financial institutions are required to obtain information on the beneficial owners of a legal entity that opens a new account for each new formal banking relationship established, even if the legal entity is an existing customer.

FinCEN issued the original 90-day limited exception in order to determine whether, and to what extent, a further exception would be appropriate for such products and services.

As a member of an advisory group to FinCEN, CUNA has had a number of discussions about the issue and will continue to share credit unions’ concerns about the compliance burden if this limited relief expires Sept. 8.

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The League of Southeastern Credit Unions & Affiliates represents 342 credit unions in Alabama, Florida and Georgia, with a combined total of $118.63 billion in assets and more than 10.1 million members. LSCU & Affiliates provides legislative and regulatory advocacy; education and training; cooperative initiatives (including financial education outreach); public messaging; information services; and business solutions.

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