FinCEN Proposes Anti-Money Laundering Rules for Certain Banks, Credit Unions

Beneficial Owner Rules: 10 Key Takeaways
Beneficial Owner Rules: 10 Key Takeaways

The Financial Crimes Enforcement Network (FinCEN) on Thursday issued a proposed rule that would subject banks with no functional federal oversight to anti-money laundering standards, ending an exemption for those institutions, according to FinCEN’s notice.

The proposed rule would establish minimum anti-money laundering standards, such as customer identification program requirements, for financial institutions that fall outside of federal regulatory oversight, including private banks, some trust companies and non-federally insured credit unions, according to the notice published in the Federal Register.

The move comes as regulators turn their attention to oversight of the “shadow banking” industry, with questions still remaining as to what role certain agencies will play.

“The proposed rule would prescribe minimum standards for anti-money laundering programs for banks without a Federal functional regulator to ensure that all banks, regardless of whether they are subject to Federal regulation and oversight, are required to establish and implement anti-money laundering programs,” the notice said.

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