Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Know-your-member rules are clarified
VIENNA, Va. (3/8/10)—The Financial Crimes Enforcement Network (FinCEN) said it worked closely with federal regulators to hammer out new guidance for financial institutions regarding the beneficial ownership of accounts. On Friday, FinCEN released “Guidance on Obtaining and Retaining Beneficial Ownership Information,” which not only clears up some confusion associated with the rules, it also consolidates regulatory expectations. The guidance reiterates that credit unions and all financial institutions are obliged to know if a member or customer presents a risk under the Bank Secrecy Act (BSA), which calls upon financial institutions to help fight such crimes as money laundering, terror financing, tax evasion, and sanctions evasion. If an accountholder appears to be a heightened risk, an institution should conduct enhanced due diligence. According to a report by the Government Accountability Office (GAO), law enforcement officials are concerned that criminals are increasingly using United States shell companies to conceal their identity and their illicit activities, FinCEN notes. “Information on beneficial ownership in account relationships provides another tool for financial institutions to better understand and address money laundering and terrorist financing risks, protect themselves from criminal activity, and assist law enforcement with investigations and prosecutions. FinCEN Director James Freis, Jr. said of the new guidance, "While much of the document consolidates previously issued regulatory guidance, by synthesizing the disparate obligations, FinCEN is highlighting how the rules can be mutually reinforcing in mitigating risks." Use the resource link below to access the guidance.
Other Resources

RSS print
News Now LiveWire
.@lisamurkowski @SenatorEnzi @SenJohnBarrasso are latest to weigh in on NCUA risk-based capital proposal. See #NewsNow tomorrow for more
27 minutes ago
Now up on News Now: Fed stays course on taper, interest rates http://t.co/6DntsW58vA
2 hours ago
Positive performance indicators and the potential for rising interest rates in @TheNCUA 's latest economic update. http://t.co/yptPbIGvnU
5 hours ago
The @CFPB has launched a nationwide effort to provide financial education. http://t.co/sF3FXHpv3k
5 hours ago
See @CUNA's @SchenkMike on TheStreet discussing a new surge consumer confidence http://t.co/SqjarTBLCQ
6 hours ago