Beneficial Owner New Account Rules: What FinTech AML Program Managers and Their Financial Institutions Need to Know
By Dan Cohen and John ReVeal
FinCEN’s new beneficial owner rules take effect May 11, impacting banks and the program managers and similar companies that help banks comply with the Bank Secrecy Act, including FinTech companies that provide AML on-boarding and monitoring services. Under the new rules, banks and other covered financial institutions will be required to identify and verify the identity of the beneficial owners of their legal entity customers. These rules will add to your regulatory burdens, particularly over the next several weeks.