FinCEN Grants Relief from CDD Rule for CDs, Auto-Renewals

The Financial Crimes Enforcement Network on Friday announced that it would grant relief from beneficial ownership requirements for certificate of deposit rollovers and loans that renew automatically; loans where the renewal, modification or extension does not require underwriting; and safe deposit box renewals. The exception applies to rollovers, renewals, modification or extensions occurring on or after May 11, 2018.

FinCEN earlier this year granted temporary exceptive relief to CD rollover and automatically renewing loans in response to concerns raised by ABA and others in the banking industry. The association has worked closely with FinCEN to advocate for making the changes permanent, noting that providing this relief would help banks — particularly community banks — better serve their customers without undermining anti-money laundering efforts.


About Author