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FinCEN CDD Final Rule

FinCEN CDD Final Rule

Fenergo’s centralized, rules-driven regulatory platform is purpose-built to help your financial organization comply with FinCEN CDD final rule obligations.

FinCEN CDD Final Rule Overview

Coming into force on May 11th, 2018, FinCEN’s Final Customer Due Diligence (CDD) Rule will require financial institutions to enforce risk-based procedures for conducting ongoing Customer Due Diligence and Know Your Customer (KYC) processes. Known as the Fifth Pillar of AML/BSA compliance, this regulation promises to improve global corporate transparency by requiring financial institutions to identify and verify the identity of the beneficial owners of legal entity customers that open new accounts.

Risk-Based Approach Required to Comply with FinCEN CDD Final Rule

The FinCEN CDD Final Rule brings significant compliance, operational and legal challenges for financial institutions in relation to client lifecycle management and onboarding. Covered financial institutions must not only know who their customers are and where their sources of funds originate, they also need to develop an accurate risk profile based on a culmination of all available client data and documentation. To achieve this, an appropriate level of due diligence checks must be applied to all beneficiaries. This will, therefore, demand an efficient, risk-based approach to preparing for and solving its increased regulatory demands.

Exceed FinCEN Beneficial Ownership Obligations with Fenergo AML

The Fenergo Anti-Money Laundering (AML) solution delivers world-class regulatory workflow technology that enables financial institutions to easily comply with a wide range of AML, KYC and CDD regulatory obligations, from initial client onboarding and throughout every event in the client lifecycle.

The solution empowers banks to enhance their risk and regulatory management by gaining a full and true understanding of every legal entity client. It clearly illustrates overall corporate structures and ownership models, as well as a full view of all associated and interlinked companies, directors, shareholders, guarantors and beneficiaries, helping the bank to proactively track and manage all of this information seamlessly.

Useful resources

FinCEN Final Rule Best Practice

Identifying, verifying and complying with new customer due diligence and beneficial ownership rules.

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UBO in Focus: FinCEN Final Rule vs 4th EU Money Laundering Directive



Fourth European Anti-Money Laundering Directive