FinCEN CDD FAQ: What types of individuals satisfy the definition of a person with “significant responsibility to control, manage, or direct a legal entity customer?”

Compliance > BSA > FinCEN CDD/BO Rule - eff 2016
Q:  What types of individuals satisfy the definition of a person with “significant responsibility to control, manage, or direct a legal entity customer?”
 
A.  Under the Rule, a legal entity must provide information on a control person with “significant responsibility to control, manage, or direct the company.”  The rule also provides examples of the types of positions that could qualify, including “[a]n executive officer or senior manager (e.g., a Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Vice President, or Treasurer).” FinCEN’s expectation is that the control person identified must be a high-level official in the legal entity, who is responsible for how the organization is run, and who will have access to a range of information concerning the day-to-day operations of the company. The list of positions is illustrative, not exclusive.
 
 
 
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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