FinCEN Interpretive Update on the 90-Day Beneficial Owner Exemption!!!

One of our clients reported that FinCEN provided them a different response regarding the use of the term “automatic” in last week’s 90-day ruling.  Here’s the response verbatim from FinCEN on 5/25/18 (emphasis added):

 

Good day,

 

There has been some discussion as to which CD and Loan rollovers and renewals would be covered by the temporary exceptive relief granted by the recent Administrative Ruling.  Within the Admin Ruling, there is mention of it covering both those that “automatically” rollover or renewal, and that statement is immediately followed by a reiteration of the exceptive relief that omits the word “automatic”.   After discussing this issue with our Policy Division yesterday, it has been determined that the exceptive relief shall be liberal in its coverage, not limited to only those that rollover or renew “automatically”, but all CD and Loan rollovers/renewals that meet the terms outlined in the Admin Ruling.

Regards,

 

FinCEN’s Resource Center

 

We also sent a follow-up to FinCEN to confirm the response provided to our client and they confirmed.  So… in plain English, it looks like any CD or Loan renewal or rollover completed between 5/11/18 through 8/9/18 will be excluded from the beneficial ownership requirements, if the account was established before May 11, 2018.  While it is a direct response from FinCEN, it’s not exactly “official”.  I would love to see something more official like the “90-day ruling” that was issued; however, as of today, this is all we have.   Stay tuned!

 

 

Published
2018/05/29
Jerod Moyer
David Dickinson

David Dickinson

David’s banking career began as a field examiner for the FDIC in 1990. He later became a Compliance Officer and Loan Officer for a small bank. In 1993, he established Banker’s Compliance Consulting. Along with his amazingly talented Team, he has written numerous compliance articles for prestigious banking publications and has developed compliance seminars that Banker’s Compliance Consulting produces.

He is an expert in compliance regulations. He is also a motivational speaker and innovative educator. His quick wit and sense of humor transforms the usually tiring topic of compliance into an enjoyable educational experience. David is on the faculty of the American Bankers Association National Compliance Schools and has served on the faculty of the Center for Financial Training for many years. He also is a frequent speaker at the ABA’s Regulatory Compliance Conference. He is also a trainer for hundreds of webinars, is a Certified Regulatory Compliance Manager (CRCM) and has been a BankersOnline Guru for many years. The American Bankers Association honored David with their Distinguished Service Award in 2016.

David and his wife Karen have three adult children, four grandchildren (none of whom live at home!) and two cats (of which Dave is allergic … the cats, not the children!). They recently moved to an acreage outside of Lincoln, Nebraska where he gets to play with his tractor. When possible David can be found fishing, making sawdust in his shop, or playing the guitar and piano. He also enjoys leading worship at his church.

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