FinCEN issues Exceptive relief for FIs from the requirement to identify and verify beneficial owners at each account opening – reducing repetitive checks while keeping full AML safeguards in place

FinCEN’s order relieves covered financial institutions from having to identify and verify beneficial owners each time a legal entity opens a new account, requiring this only at initial onboarding, when prior information becomes unreliable, or under risk-based procedures. It aims to reduce duplicative compliance burdens while preserving core AML/CFT safeguards such as ongoing monitoring and risk-based due diligence under the Bank Secrecy Act…