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#2178430 - 05/16/18 09:04 PM 90-day limited exceptive relief covered FI
Sunshine Lady Offline
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Administrative Ruling: Beneficial Ownership Requirements for Legal Entity Customers of Certain Financial Products and Services with Automatic Rollovers or Renewals
The Financial Crimes Enforcement Network (FinCEN) issued an administrative ruling today to provide a 90-day limited exceptive relief to covered financial institutions from the obligations of the Beneficial Ownership Requirements for Legal Entity Customers (Beneficial Ownership Rule) with respect to certain financial products and services that automatically rollover or renew (i.e., certificate of deposit (CD) or loan accounts) and were established before the rule’s applicability Date, May 11, 2018.

Administrative Ruling: https://www.fincen.gov/resources/statute...uirements-legal
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#2178431 - 05/16/18 09:07 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
MollyM Offline
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So - question - what if your loans do not "auto" renew? Do those get exempt too as long as you don't add money, change the note #, etc?
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#2178432 - 05/16/18 09:10 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
ahkcompliance Offline
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Midwest
For us, on the loan side we said if they sign any document we obtain the certification. Our loans do not auto renew and require some kind of document to be signed.

For CDs, they do auto renew.

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#2178436 - 05/16/18 09:21 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
Always In Training Offline
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Where the Green Grass Grows
This covers my CD customers. (Happy dance!!!!!!!)

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#2178437 - 05/16/18 09:22 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
ahkcompliance Offline
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Very happy!!!

One question...what about they change the term but we keep the same account number? Is that a new account and require beneficial owner?

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#2178439 - 05/16/18 09:26 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
Always In Training Offline
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Where the Green Grass Grows
I'm gonna tell me folks that any customer made change on an auto-renewing is a new CD. I'd make a customer sign docs to change a CD term, so new certification for us. Our loans require new signatures too - so we're getting certification forms on that too.

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#2178440 - 05/16/18 09:27 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
ahkcompliance Offline
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Make sense...we get a signature as well for CD changes.

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#2178443 - 05/16/18 09:32 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
Daisy Doodle Offline
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Dang, we've already done a lot of our CD's. Since this relief is temporary, wonder if we should press on. Seriously, they are doing this now??

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#2178444 - 05/16/18 09:34 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
Sunshine Lady Offline
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We have already started and intend to continue on. It is just one less project to be done.
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#2178445 - 05/16/18 09:37 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
Ann Offline
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There is a typo in the ruling that refers to a date of May 11, 2016. Wish they would get their act together!

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#2178451 - 05/16/18 09:46 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
Mel in WA Offline
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We are just formulating a plan for CD renewals, so should we stop until August?? I've never heard of a "limited exceptive relief". Not sure how to proceed....

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#2178452 - 05/16/18 09:46 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
BrianC Online
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I read the same, Ann. I sent an email to FinCEN to clarify that they actually mean 2018, but I have not received a response.
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#2178459 - 05/16/18 09:57 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
Brad B Offline
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I honestly do appreciate that FinCEN is going to give some thought to whether rollover and renewal accounts should apply to this rule. However, it sure would have been better to do that before the rule was issued and training was done. Do I really need to spend my energy undoing this aspect of our training and procedures four business days AFTER the effective date?!?!?! Good grief! This is a perfect example of compliance frustration.
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#2178462 - 05/16/18 10:16 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
JC (Darth HMDA) Offline
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so - who is continuing to collect on cd rollovers - and who is going to hold off during the 90 day period? saw a couple of responses - but just curious what others are doing.

And yes, after... sigh
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#2178464 - 05/16/18 10:23 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
MollyM Offline
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I am not collecting on CD auto renewals - Loans yes.
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#2178466 - 05/16/18 10:45 PM Re: 90-day limited exceptive relief covered FI MollyM
Elwood P. Dowd Offline
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If you have to eat a frog, don't nibble. Contact all legal entity customers with automatically renewable time deposits right now with a single mailing. Follow-up continuously until you have an Appendix A that incorporates a promise to let you know of any changes for each of those customers.

Be done with it and go on to something of at least momentary importance.
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#2178469 - 05/17/18 12:11 AM Re: 90-day limited exceptive relief covered FI Sunshine Lady
TryingtoComply Offline
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With respect to automatically renewing CDs, we will proceed as planned. If they don't change their mind then we will be done by the end of the relief period.

Our loans do not automatically renew. We get a signed agreement and will be obtaining a CBO.

This is a mute issue for my shop.

Four days after the effective date. What a joke. I think they are playing a game here. They are saying they are going to "think about it." Really, there is nothing to think about. They have already stated that automatically renewing CDs are low risk. They should not be considered a new account. I don't have a problem with loan renewals. On the loan side once a loan matures, a renewal is treated as if it's a new application for credit and requires a new credit decision, so it makes more sense.
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#2178478 - 05/17/18 12:05 PM Re: 90-day limited exceptive relief covered FI TryingtoComply
Elwood P. Dowd Offline
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Where's Paul Harvey and "The Rest of the Story" when you need him? They have had a flood of feedback on this ridiculous position for two years. Yet, they publish a Q & A reaffirming it on April 3 only to offer to reconsider it on May 16.

Who or what got their attention in the meantime? crazy
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#2178483 - 05/17/18 12:21 PM Re: 90-day limited exceptive relief covered FI Elwood P. Dowd
Retired DQ Offline
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Originally Posted By Ken_Pegasus
If you have to eat a frog, don't nibble. Contact all legal entity customers with automatically renewable time deposits right now with a single mailing. Follow-up continuously until you have an Appendix A that incorporates a promise to let you know of any changes for each of those customers.

Be done with it and go on to something of at least momentary importance.
Agree. At this point clients have whiplash.
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#2178484 - 05/17/18 12:37 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
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This is a complete joke, their handling of this has been. Fincen has made for a very grumpy P*Q today. Too little, too late as usual. Will we be reimbursed for our postage and staff time since they made it clear we had to get it on renewals a month ago and we wanted to be proactive to ensure compliance? I think not.

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#2178499 - 05/17/18 01:54 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
MollyM Offline
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Posts: 127
Mississippi
So how many are continuing on with the process and how many are not? We were starting yesterday and immediately stopped - not planning to at this point. My worry is what they will decide and what they will expect despite the temporary reprieve. They are bi-polar and it is a detriment to this regulation that they are not bankers and most of FinCEN has not worked in the industry. Very frustrating !!!!!
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“The strongest of all warriors are these two—Time and Patience.”
—
Leo Tolstoy
Russian Author

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#2178520 - 05/17/18 02:51 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
Laneta Offline
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Are only auto renewable loans (i.e., Letters of Credit) along with CDs included in this 90 day relief?
Or are all loan renewals covered?

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#2178521 - 05/17/18 02:55 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
rlcarey Online
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Galveston, TX
First sentence of the release:

with respect to certain financial products and services that automatically rollover or renew (i.e., certificate of deposit (CD) or loan accounts)

But you need to define what you think a "renewal" might be.
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#2178525 - 05/17/18 03:06 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
Daisy Doodle Offline
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We are well into this process as well. Personally I think it makes about as much sense to complete it at this point then to stop mid-stream, but I have a feeling I will be overruled on this. I don't like half-finished projects, but I don't really have a good argument to counter.

What are the odds they won't make it permanent though and we will have to restart the process?

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#2178532 - 05/17/18 03:23 PM Re: 90-day limited exceptive relief covered FI Sunshine Lady
MollyM Offline
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Posts: 127
Mississippi
If they reverse it and restart the process - I think that the ABA will revolt in a large fashion. This is the most ridiculous thing FinCEN has ever done - right after requiring banks to do this instead of the federal government or Secretaries of State into a centralized database.
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“The strongest of all warriors are these two—Time and Patience.”
—
Leo Tolstoy
Russian Author

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