While credit unions pride themselves on knowing their members, once the proposed Financial Crimes Enforcement Network due diligence rule goes into effect, they will likely have to get to know them just a little bit better.

The rule, Customer Due Diligence Requirements for Financial Institutions, published Aug. 4 in the Federal Register, seeks to clarify and strengthen customer due diligence requirements for banks and credit unions, brokers and dealers in securities, mutual funds, commodities and futures commission merchants.

Proposed under the Bank Secrecy Act, the rule contains explicit customer due diligence requirements and includes a new regulatory requirement to identify beneficial owners of legal enterprises, subject to certain exemptions. For credit unions, the new rule means having a clearer understanding of accountholders identities and practicing greater diligence in monitoring and reporting changes to their accounts.