FinCEN Corrects Beneficial Ownership Form


FinCEN has published [82 FR 45182] corrections to the Certification Form in Appendix A to 31 CFR 1010.230 (Beneficial ownership requirements for legal entity customers). FinCEN indicated that all the changes were technical corrections. The corrections were described as follows in the Federal Register document:

“As revised, appendix A (Certification Form) is identical to the original version except for the following: In the first sentence in Part I under the heading “What information do I have to provide?”, the term “foreign persons” is changed to “non-U.S. persons”; and in Part II: The heading of Section II b. is changed to “b. Name, Type, and Address of Legal Entity for Which the Account is Being Opened:”; and in the headings of the last column in the Tables in Section II c and Section II d, the term “Foreign Persons” is changed to “Non-U.S. Persons” and the term “Social Security Number” is added after the term “persons”; and in footnote 1, the term “Foreign Persons” is changed to “Non-U.S. Persons” and “a Social Security Number,” is inserted after the word “provide.”

A quick analysis of the changes suggests that the addition of the “type” of legal entity business (corporation, LLC, etc.) as a required piece of information and of “Social Security number” as an acceptable identifying number for non-U.S. persons will require adjustments in the implementation plans of financial institutions and third-party service providers.

Source:  FinCEN

Question of the Week

If a member is a covered borrower at the time he/she opens a credit card, but later ceases to serve on active duty, is his/her credit card account still covered by the MLA?

No, once the member is no longer on active duty, they are no longer considered a covered borrower under the MLA. The regulation provides us with examples of this:

(2) Examples—(i) Covered borrower. Consumer A is a member of the armed forces but not serving on active duty, and holds an account for closed-end credit with a financial institution. After establishing the closed-end credit account, Consumer A is ordered to serve on active duty, thereby becoming a covered borrower, and soon thereafter separately establishes an open-end line of credit for personal purposes (which is not subject to any exception or temporary exemption) with the financial institution. This part applies to the open-end line of credit, but not to the closed-end credit account.

(ii) Not a covered borrower. Same facts as described in paragraph (a)(2)(i) of this section. One year after establishing the open-end line of credit, Consumer A ceases to serve on active duty. This part never did apply to the closed-end credit account, and because Consumer A no longer is a covered borrower, this part no longer applies to the open-end line of credit.


32 CFR 232.2(a)(2)

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Consumer Financial Protection Bureau (CFPB)

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CFPB Director Cordray delivered prepared remarks on the Payday Rule Press Call. Cordray’s remarks provide details on the current payday lending market and how the CFPB’s new rule aims to protect consumers.

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Federal Reserve Board (FRB)

The FRB announced that it has extended the comment period for its proposal to enhance the effectiveness of board of directors and its proposal to implement new rating systems for large financial institutions. Comments, originally due on October 10th and 16th (respectively), are now due on November 30, 2017.

The October edition of FedFocus is now available.

Federal Deposit Insurance Corporation (FDIC)

The FDIC announced that it will host a teleconference to discuss the implementation of the 2018 Home Mortgage Disclosure Act (HMDA) regulatory changes. The teleconference will be held on Thursday, October 26, 3028 from 1:30 p.m. to 3:00 p.m. Eastern Time and advance registration is required.

U.S. Department of the Treasury (Treasury)

The Treasury released its Second Report to the President on Identifying and Reducing Tax Regulatory Burdens.  The report presents the Treasury Secretary’s recommendations to mitigate the burden imposed by the regulations identified in the Treasury’s First Report to the President.

Office of Foreign Assets Control (OFAC)

OFAC has updated the SDN list as of October 6, 2017. The last update prior to this was October 4, 2017.

Questions? Contact the Compliance Hotline: 1.800.546.4465;

Posted in Compliance News, Compliance News.