The Financial Crimes Enforcement Network said it will publish long-awaited customer due diligence rules Thursday, which will require credit unions and other financial institutions to identify and verify the beneficial owners of legal entity customers.
In a significant change from the proposed rules, issued in 2014, financial institutions will not be required to comply with the new rules until May 2018, compared to the one-year waiting time contained in the proposed regulations. FinCEN said the single year specified in the proposed rules would not give financial institutions enough time to change their current internal systems.
While CUNA is still examining the rules, officials there said they are pleased that FinCEN is delaying the effective date. Still, they said they are not happy with the final result.
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