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OCC Bulletin 2018-12 | May 11, 2018

Bank Secrecy Act/Anti-Money Laundering: Customer Due Diligence and Beneficial Ownership Requirements for Legal Entity Customers – Overviews and Examination Procedures

To

Chief Executive Officers of All National Banks and Federal Savings Associations, Federal Branches and Agencies, Department and Division Heads, All Examining Personnel, and Other Interested Parties

Summary

On May 11, 2018, the Federal Financial Institutions Examination Council (FFIEC)1 released the Customer Due Diligence (CDD) and Beneficial Ownership (BO) Requirements for Legal Entity Customers – Overviews and Examination Procedures for the Customer Due Diligence Requirements for Financial Institutions (CDD Rule), issued as a final rule by the Financial Crimes Enforcement Network (FinCEN) on May 11, 2016, with mandatory compliance on May 11, 2018. The CDD Overview and Examination Procedures replace those previously issued on December 2, 2014. The BO Requirements for Legal Entity Customers Overview and Examination Procedures are new. These overviews and procedures reflect the ongoing commitment of the federal and state banking agencies to examine financial institutions for compliance with the Bank Secrecy Act (BSA) in accordance with uniform standards and principles.

Note for Community Banks

The FFIEC Bank Secrecy Act/Anti-Money Laundering Examination Manual contains guidance to examiners and examination procedures applicable to all OCC-supervised institutions.

Highlights

  • The CDD Overview and Examination Procedures and the BO Requirements for Legal Entity Customers Overview and Examination Procedures describe and set forth examination procedures for FinCEN's CDD Rule that was published on May 11, 2016, which amends FinCEN's BSA regulations.2 The rule clarifies CDD requirements for financial institutions,3 and establishes new requirements regarding the identification and verification of BO of legal entity customers,4 subject to certain exclusions and exemptions.
  • These changes were effective July 11, 2016, and compliance is mandatory on May 11, 2018.
  • The new CDD overview and examination procedures replace the Customer Due Diligence—Overview and Examination Procedures on pages 56 and 59, respectively, of the 2014 FFIEC Bank Secrecy Act/Anti-Money Laundering Examination Manual.

Further Information

Please direct questions to OCC BSA/AML Compliance Policy at (202) 649-5470.

 

Grovetta N. Gardineer
Senior Deputy Comptroller for Compliance & Community Affairs

Related Link

1 The FFIEC comprises the principals of the following: The Board of the Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency (OCC), Bureau of Consumer Financial Protection, and State Liaison Committee.

2 31 CFR 1010.230 and 1020.210.

3 Financial institutions covered by the rule include national banks, federal savings associations, and federal branches and agencies of foreign banks, among other financial institutions.

4 The term "legal entity customer" means a corporation, limited liability company, or other entity created by the filing of a public document with a Secretary of State or similar office, a general partnership, and any similar entity formed under the laws of a foreign jurisdiction that opens an account. 31 CFR 1010.230(e).

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