The May 11, 2016, Final Rule on Customer Due Diligence (CDD) requirements created an entirely new section, 31 CFR 1010.230, to address the new beneficial owner rules. One of the provisions is that covered financial institutions are required to establish and maintain written procedures that are reasonably designed to identify and verify beneficial owners of legal entity customers and to include such procedures in their AML Compliance Program.
The Final Rule also amended the current Anti-Money Laundering (AML) Program Requirements, set forth in 31 CFR 1020.210, to “explicitly” include risk-based procedures for conducting ongoing customer due diligence, to include understanding the nature and purpose of customer relationships for the purpose of developing a customer risk profile. This amendment essentially creates a “fifth pillar” of BSA/AML compliance and makes it official that today’s existing CDD regulatory expectations/guidelines are now REQUIRED.
In plain English, this means you need to amend your Bank Secrecy Act (BSA) Policy and update your written BSA Procedures. Do not fear; we are here to help. We have made the required updates to our sample BSA Policy and BSA Procedures templates. You can find them on the Free Downloads page of our website.
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!