Fincen Beneficial Ownership Registry Goes Live

Nikhil Gore’s commentary was included in an American Banker article covering the launch of the U.S. Treasury Department Financial Crimes Enforcement Network’s (Fincen) beneficial ownership registry.

Nikhil noted that banks will not immediately be able to access the beneficial ownership information database during the phase in, and that banks will need to wait for the revised customer due diligence requirements before they may be able to utilize the registry to lessen their CDD compliance burden.

"It remains an open question when banks will obtain access to the Fincen beneficial ownership information database, and how they will be expected to incorporate the database into their customer due diligence and broader anti-money-laundering processes. Fincen has not yet proposed modifications to the current CDD Rule for banks and, late last year, Fincen indicated that banks likely will not receive access to information in the database until the CDD Rule is revised," he said.

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