Q: Are covered financial institutions required to implement different processes than currently established to comply with the Rule’s ongoing monitoring and updating requirement?
A: To the extent that a covered financial institution has monitoring processes in place that allow the institution to meet the Rule’s requirements, such institution may use its existing monitoring processes to comply with customer due diligence monitoring and updating obligations. As the preamble to the Rule states, “current industry practice to comply with existing expectations for SAR reporting should already satisfy this proposed requirement.”
The above FAQ was included in FinCEN’s 2nd set of CDD FAQs that were released in April 2018. The FAQs are provided to assist financial institution in understanding the scope of the customer due diligence / beneficial ownership rule. The 2018 FAQs may be found here: