One of our clients reported that FinCEN provided them a different response regarding the use of the term “automatic” in last week’s 90-day ruling. Here’s the response verbatim from FinCEN on 5/25/18 (emphasis added):
There has been some discussion as to which CD and Loan rollovers and renewals would be covered by the temporary exceptive relief granted by the recent Administrative Ruling. Within the Admin Ruling, there is mention of it covering both those that “automatically” rollover or renewal, and that statement is immediately followed by a reiteration of the exceptive relief that omits the word “automatic”. After discussing this issue with our Policy Division yesterday, it has been determined that the exceptive relief shall be liberal in its coverage, not limited to only those that rollover or renew “automatically”, but all CD and Loan rollovers/renewals that meet the terms outlined in the Admin Ruling.
FinCEN’s Resource Center
We also sent a follow-up to FinCEN to confirm the response provided to our client and they confirmed. So… in plain English, it looks like any CD or Loan renewal or rollover completed between 5/11/18 through 8/9/18 will be excluded from the beneficial ownership requirements, if the account was established before May 11, 2018. While it is a direct response from FinCEN, it’s not exactly “official”. I would love to see something more official like the “90-day ruling” that was issued; however, as of today, this is all we have. Stay tuned!
Deb joined Banker’s Compliance Consulting with twenty years of experience in the banking industry. Her past positions include teller, credit review analyst, assistant financial officer, BSA Officer, Compliance Officer, and Director of Compliance. She has worked for both a small community bank and a large billion-dollar bank.
Deb has Associate Degrees in Business Management and Accounting. She is a graduate of the American Bankers Association National Graduate School of Compliance Management, an honors graduate of Schools of Banking Compliance School, and a graduate of Schools of Banking Advanced School of Banking. Deb’s considerable knowledge and experience make her a valuable member of the Banker’s Compliance Consulting Team. Deb is a Certified Regulatory Compliance Manager (CRCM) and a Certified Anti Money-Laundering Specialist (CAMS).
Deb loves to spend her free time cycling, running, kayaking and weight lifting with her husband. Between them, they have three adult children and six grandchildren. Other interests include anything outdoors and anything she hasn’t done or seen yet!