U.S. Department of the Treasury in Washington, D.C.
The U.S. Treasury's Financial Crimes Enforcement Network has granted regulatory relief to credit unions and other financial institutions by eliminating a long-standing requirement to verify business ownership information every time a business opens a new account.
Under the order issued Feb. 13, institutions will now identify and verify beneficial owners only when a business first opens an account, when information appears unreliable or when risk-based monitoring requires it.
The change modified the 2016 Customer Due Diligence rule, which previously required financial institutions to repeat ownership verification at each new account opening. FinCEN said the requirement had become duplicative and inconsistent with a risk-based anti-money-laundering framework.
NCUA officials told credit unions the relief is optional and does not alter broader Bank Secrecy Act obligations, including suspicious activity monitoring, recordkeeping and reporting requirements.
FinCEN Director Andrea Gacki said the action modernizes compliance while maintaining safeguards against illicit finance. The agency emphasized that institutions must still maintain written procedures to monitor customers and update ownership information when risk indicators arise.
The relief is part of broader federal efforts to streamline Bank Secrecy Act compliance and align customer due diligence requirements with evolving financial crime risks while reducing administrative burden on regulated institutions.
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