Final Rule


On Friday, FinCEN issued a final rule addressing certain account rollovers, renewals, modifications and extensions under the Beneficial Ownership requirements. This is not the temporary relief issued in May—and again in August—rather it grants permanent exceptive relief by removing auto rollover of CDs, renewals of loans and lines of credit, and safe deposit box lease renewals from the category of “new” accounts subject to the Beneficial Ownership requirements.

The exceptive relief does not apply to the initial opening of such accounts. Additionally, it does not apply to renewals of loans and lines of credit that require ‘underwriting review and approval,’ which is not defined. This appears to limit any ‘renewal’ to primarily setting a later payoff date or modifying terms, including the credit limit on a line, which is very limited.

Banks are reminded that despite this permanent exceptive relief under the Beneficial Ownership requirements, the bank must still comply with all other applicable AML requirements under BSA, such as maintaining an AML program and reporting suspicious activity that includes those situations.