FinCEN CDD FAQ: May a legal entity provide the identification of a nominee owner in response to a financial institution’s request for the identification of a beneficial owner?

Compliance > BSA > FinCEN CDD/BO Rule - eff 2016
Q:  May a legal entity provide the identification of a nominee owner in response to a financial institution’s request for the identification of a beneficial owner?
 
A.  No.  As stated in the preamble to the Rule, FinCEN intends that the legal entity customer identify its ultimate beneficial owner or owners and not “nominees” or “straw men.”  FinCEN reiterates that it is the responsibility of the legal entity customer to identify its ultimate beneficial owners and that the financial institution may rely upon the information provided, unless the institution has reason to question its accuracy.
 
 
 
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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