Beneficial Ownership Requirements for a Legal Entity

Do you know who really owns your business accounts? Discover the new customer due diligence requirements.

FinCEN issued the Customer Due Diligence (CDD) Rule on December 16, 2022 to amend existing BSA regulations for certain financial institutions. While following explicit customer due diligence requirements, you must identify and verify the identity of beneficial owners of legal entity customers.

You need to update your protocols for determining the ownership of all accounts, particularly for businesses, associations, trusts, and other organizations.

• What is beneficial ownership?
• How can you determine beneficial ownership?
• What does the new Customer Due Diligence Beneficial Owner Rule require?
• How should you modify your policies and procedures in your institution?
• What decision points are needed?
• Which customer types require frequent monitoring?