According to the Financial Crimes Enforcement Network, or FinCEN, banks, brokers or dealers must comply with the final rule under the Bank Secrecy Act that strengthens customer due diligence requirements. This final rule went into effect on May 11, 2018. The Bank Secrecy Act requires that financial institutions keep customer records that aid in criminal, tax or regulatory investigations or protect against international terrorism.
The U.S. Treasury estimates that $400 billion dollars in illicit proceeds are generated annually in the United States due to financial crimes. Identifying beneficial owners, or persons with at least 25 percent equity interest in the legal entity, will prevent evasion of sanctions, improve risk assessment, facilitate tax compliance and meet international standards.
Identify and verify your customers and beneficial ownership.
By strategic monitoring, you can identify and report suspicious transactions and customer information updates.
With greater data, you can understand the nature and purpose of customer relationships to develop a customer risk profile.