So far, we're keeping the process in place with the exception of not closing any CDs that renew before Aug 9th if they choose to not provide the BCO (my compromise to keep the procedure in place without this thing getting escalated by the Director of Deposit Ops). I have an email out to the Director of Loan Ops with a marked up version of the FinCEN ruling, the emphasis made on "automatic renewals" and my suggestion that we don't change anything on the loan side. Haven't heard back from him yet. I'm aware of one loan type that 'might' fall into the automatic category and he'll have to convince me it's a true automatic renewal.

For now anyway, the USS Benship has sailed and is not returning to port based on what we have right now. If FinCEN does something eff Aug 9th, we'll back off at that point with rock solid definitions of what products fall into any exception.

Everything was a go on May 11, 2018 and now whoa pull the reins. Ridiculous. Have no idea what I am doing about this 90 day reprieve. My desk is piled with other bank business today. Do the regulators really think we have nothing to do but sit around all day drinking coffee and play golf at 3PM. Arghhhhhhh!

We will continue on and like others have said, not close out folks that we don't receive them back for prior to 8/9/18. We've ALREADY PROACTIVELY (TO ENSURE COMPLIANCE AHEAD OF TIME) mailed to our 500+ customers with CD's, inserted postage paid envelopes, paid for postage and taken staff time, which is an expense, to prepare the mailing, my time to review the forms to ensure they are complete, gone back to retail staff to reach out to the customers who didn't complete them in full, so why go back now, almost a week AFTER the effective date.

By the time General Counsel sent it to me and the rest of the Legal Dept, I had the ability to Reply All with an explanation of what we're doing (virtually no change), why, and who has assisted in the decisions. All necessary parties currently on board unless Rambo decides to jump in. I'm really focused on the "automatic renewal" raised by FinCEN and that doesn't apply to most loans. It might not apply to a CD if it doesn't have the auto-renewal clause in it but will look at our contractual agreement on business CDs to see if it's even an issue.

Oh, dang - PQ! We're only mailing them to business CD-holders on a monthly basis to make it easy - there were 8 of them impacted in May.

In our shop, Ops thought it was easier to mail all at once so the branches would have a chance to "work the list" for those who didn't return.

We are continuing along our path to collect beneficial ownership for auto-renewing CDs and loans. Given FinCEN's recent history, I have no confidence that they will ultimately exempt either product from CDD, and I do not want to retrain our bankers after we've told them this is required.

EXACTLY McFly!

Pretty sure that someone got a letter in congress or their campaign accounts or PACs got letters about this on their automatically renewing accounts and finally got FinCEN's attention.

Watching Scandal has jaded me to how DC works.


How sure are we that 5/11/16 in the Ruling is a typo? I called FinCEN with no response yet.

It's been confirmed a typo from a source I have who spoke to Fincen and they were told a revised ruling was issued today with the correct date.

Well, we cancelled the requirement internally. I sure hope they do not reverse their reversal so we have to go back and figure out where we left off.

Helpline responded to my email from yesterday confirming the typo.

I trust nothing these days so we will continue on as we have. The last minute communication over the last month has made leery to say the least. We are too far into it now to backtrack so if the reversal sticks, fine, we have a bunch of extra info and forms and we've already incurred the expense associated with their first direction a month ago. If it doesn't we're ahead of the game.

I've had no kickback internally today. We worked it out first thing this morning and hopefully it stays worked out. It's in place and we're going. The bank across the street launched it on Jan 1st - part of me wonders whether this hit anyone's radar other than as a newsbyte.

Clearly, this is a result of many bankers sending them emails and calling them plus organizations sending them letters. I say we keep pounding them with questions for clarification. Maybe they will just give up and rescind the entire rule!

I received the following from FinCEN:
The exceptive relief is only intended to cover product and service renewals/rollovers where the account relationship is set to automatically renew by way of automatic processes the institution established to continue the banking relationship with the customer. "Automatic" is an integral part of the exceptive relief.

our loan products do not automatically renew so we are obtaining the CBO form. The customer comes in and may say "..I want to renew my note, but we have a new loan number, modified terms, and of course new signature requirements - we are going to get a CBO.
our CD products do so we will wait for FINCEN to come back after 90 days and tell us what to do

FinCEN 'officially' corrected the date typo this afternoon.

https://www.fincen.gov/sites/default/fil...508-revised.pdf

We did a mass mailing around May 1 to all of our business CD customers that are affected. It was only 165 accounts, so not too much work. We're continuing on with the project. There's no guarantee that FinCEN will make the relief permanent, and I'd hate to have to do this all over again.

I don't recommend waiting for FinCEN. You saw how long it took them to come out with the second set of FAQs -- and just about a month before the May 11 "applicability date." Given FinCEN stubborn insistence that each term of a rollover CD is a new account, I would not put much hope in the thought that FinCEN will relent and reverse itself. Don't waste the three months "grace." Take that time to chase down CBOs on your legal entity customer with auto-rolling CDs and avoid the scramble at the 11th hour.

I agree. Besides, every time we change things it causes confusion and we lose credibility. I will wait for a final decision before I change what we have already put in motion.

Thank you John - I will make this recommendation to management. given we have a low number of CD rollover customers it would be worth our time.

Do banks really have commercial loans that automatically renew? I don't know I've ever heard of that...

We are having a bit of a disagreement ... the verbiage that states that the business will be responsible for notifying us about a change of ownership...can this verbiage be used ONLY on auto renewable CD's and auto renewable loans? Our vendor has put this verbiage on the BO form that we use for all and now the staff seems to think one and done for everyone....our CD's auto renew but our loans do not...I would appreciate the input..

...can this verbiage be used ONLY on auto renewable CD's and auto renewable loans?

yes