May 6, 2016, the Financial Crimes Enforcement Network of the U.S. Department of the Treasury (FinCEN) finalized regulations that will require banks, securities broker dealers, mutual funds, futures commission merchants, and introducing brokers in commodities (collectively, Covered Institutions) to identify and perform due diligence on the ultimate beneficial owners and control persons of any legal entity customer that establishes an account at a Covered Institution. Although FinCEN received more than 140 comments in response to the proposed rule, including comments that raised significant concerns with and sought substantial modifications to the proposal, the final rule is largely identical to the proposed rule.
To learn more, please read the GT Alert “FinCEN Finalizes Customer Due Diligence Rule.”