BY DAVE KOVALESKI
“I have heard testimony from a variety of experts in the field of detecting and pursuing criminals in the financial system, and many agree that a critical component of success in these investigations is law enforcement’s timely access to beneficial ownership information,” Subcommittee Chairman Rep. Steve Pearce (R-NM) said. “However, there are legitimate concerns about the application of this rule and the impact it could have on banks already struggling with BSA compliance. Adding additional requirements will likely lead to the de-risking of legitimate business accounts because of increased regulatory burdens. It is important for our federal regulators to strike the appropriate balance between ensuring safety as well as access to the financial system.”
FinCEN and the Department of the Treasury will remain engaged with stakeholders, including financial institutions, trade associations, regulators, and examiners to properly implement the CDD rule.