The Financial Crimes Enforcement Network has issued a final rule establishing minimum standards for anti-laundering programs for institutions lacking a federal functional regulator, including state chartered non-depository trust companies, private banks and non-federally insured credit unions.
Under the final rule, these institutions will be required to establish and implement anti-money laundering programs, which must include policies and procedures, a dedicated compliance officer, employee training and an independent audit function. Institutions will be subject to customer identification program requirements and beneficial ownership requirements.
The final rule will take effect 60 days after publication in the Federal Register, and institutions will have 180 days to come in compliance with the requirements. In a previous comment letter, the American Bankers Association advocated for a longer transition period to allow the affected institutions ample time to make changes to their internal controls, policies and procedures and systems.