FinCEN Considers Rules on Identifying New Members Joining Credit Unions

On Feb. 29, 2012, the Financial Crimes Enforcement Network (FinCEN) issued an advance notice of proposed rulemaking (ANPR) to solicit public comment on a wide range of questions pertaining to the possible application of an explicit customer due diligence (CDD) obligation on financial institutions, including a requirement for financial institutions to identify beneficial ownership of their accountholders.

Over the past 10 years, FinCEN and the broader Treasury Department have continued to engage the federal financial regulatory agencies, financial institutions, and Congress to combat various risks associated with the criminal abuse of legal entities, such as shell companies, and the associated exploitation of the financial system to facilitate financial crime, including money laundering, financing of terrorism and proliferation, and tax evasion.

Despite efforts to highlight and clarify CDD and beneficial ownership expectations over this time, FinCEN is concerned that there is a lack of uniformity and consistency in the way financial institutions address these implicit CDD obligations and collect beneficial ownership information within and across industries.

Comments on the ANPR will be accepted for 60 days from the date of publication in the Federal Register.


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News.