FinCEN CDD FAQ: Are covered financial institutions required to collect any information about beneficial ownership from the legal entity customer?

Compliance > BSA > FinCEN CDD/BO Rule - eff 2016
Q:  Are covered financial institutions required to collect any information about beneficial ownership from the legal entity customer?
 
A.  Yes.  Covered financial institutions must collect information on individuals who are beneficial owners of a legal entity customer in addition to the information they are required to collect on the customer under the CIP requirement.
 
 
 
This FAQ, and others, was released in July 2016.  The 2016 FAQs were issued to assist institutions in understanding the scope of the Customer Due Diligence (CDD) requirements that were published in May 2016.   They may be found here:  https://www.fincen.gov/statutes_regs/guidance/pdf/FAQs_for_CDD_Final_Rule_(7_15_16).pdf
 

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