FinCEN requested comments today on the renewal of the Office of Management and Budget control number for Bank Secrecy Act regulations applicable to correspondent accounts and private banking accounts.
Under the regulations, certain financial institutions are required to establish and maintain due diligence programs for foreign financial institutions and private banking accounts. The regulations also require such banks to establish enhanced due diligence policies, procedures and controls “when establishing, maintaining, administering or managing” a correspondent account in the U.S. Private banking account regulations require banks to establish due diligence policies and procedures to identify nominal and beneficial owners of private banking accounts (including senior foreign political figures), determine the source of the funds, and guard against money laundering.
The notice gives the public 60 days to comment on existing regulatory requirements and burden estimates, with feedback due by Aug. 12.
