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!