NCUA has issued guidance regarding the customer due diligence and beneficial ownership provisions that are part of the Bank Secrecy Act/Anti Money Laundering Rules.
Since May 11, credit unions have been required to comply with the new BSA/AML rules published by the U.S. Department of Treasury’s Financial Crimes Enforcement Network. The rules are intended to codify customer due diligence requirements for covered financial institutions. They contain a new requirement to identify and verify the identity of individuals who own or control certain legal entity members, subject to a number of exclusions and exemptions.
In the guidance, NCUA Board Chairman J. Mark McWatters stated that the agency’s examiners will accept “reasonable and good faith efforts” to comply with the rule through 2018. At the same time, McWatters noted that NCUA’s acceptance of good faith efforts for supervision purposes does not shield a credit union from FinCEN penalties that could arise from failing to comply with all BSA/AML requirements.
To view the guidance, visit NCUA’s website.