ABC Inc., a legal entity customer, opens a new account on May 15th. All required beneficial ownership information is provided. The control personal signs a statement agreeing to notify the bank of any changes in ownership.

On June 15th, the control person for ABC Inc. request to open a new account. Even if there has not been any changes in beneficial ownership we are still required to obtain a recertification of beneficial ownership by the person opening the account.

Correct??

Yep. Required for each new account opened. FinCEN considers the opening of a new account as an opportunity to re-certify to ensure that the information remains current.

Onerous? Yes!

Are we required to update the identification information as well each time we update the Beneficial Ownership/Controlling Person information?

Let's say all ownership/control stays the same at the time of recertification, but a DL has expired since then, are we required to update this?

I can't imagine that the person you identified ceased to be the same person just because their DL expired. Just saying.

This has been my reasoning too, but this is one area where I anticipate that I might be challenged by an examiner based on the way the FAQs are worded:

"...a financial institution may rely on information in its possession to fulfill the
identification and verification requirements, provided the existing information
is up-to-date, accurate, and the legal entity customer’s representative certifies or
confirms (verbally or in writing) the accuracy of the pre-existing CIP information."

If "existing information" refers to their personal identifying information, great, if it refers to the information collected from their identification, then my procedures are wrong.

Common sense is on our side, hopefully that means something.

RockChucker & Colorado - thanks for your responses.

Colorado - yes, that citation you mentioned is what concerned me.

So is it safe to say that you all would not be taking efforts to gather new IDs if they've expired? And then wait to see if examiners take issue with this?

We are going to be updating expired drivers licenses. Ugh.

We decided that we will not. However, I have similar concerns. I sure hope examiners use common sense.

We are still noting the Type, state/country of issuance, issue date and expiration date in fields I added to our CBO. Employees have been instructed to retrieve information for existing customers from our records (typically maintained in our Core). I also added a field to indicate "existing customer." If I see an expired DL and this box is checked I will know why. This box will also indicate why an OFAC verification was not performed (the customer is already being compared to the OFAC list nightly).

We will not be updating expired IDs.