Skip to content
GeoDataVision
Thread Options
#2203600 - 01/22/19 07:18 PM Benefical Ownership Recertification
RVaughn, CAMS Offline
New Poster
Joined: Dec 2015
Posts: 22
As I am preparing for our first exam since the final rule became mandatory - I stumbled across a "what if". If for some reason, a triggering event occurred on an existing customer (who we already obtained and verified beneficial ownership on) and the personal banker failed to recertify the beneficial ownership - would you consider that a CIP exception?

Would that be a line item on your CIP exception report?
Last edited by RVaughn; 01/22/19 08:07 PM.
Return to Top
BSA/AML/CIP/OFAC Forum
#2203613 - 01/22/19 08:32 PM Re: Benefical Ownership Recertification RVaughn, CAMS
TryingtoComply Offline
Diamond Poster
Joined: Apr 2013
Posts: 1,965
The West
CIP and Beneficial Ownership are two different things, so it would not be a CIP violation.

What type of triggering event occurred?
_________________________
TryingToComply
CRCM

Return to Top
#2203620 - 01/22/19 08:59 PM Re: Benefical Ownership Recertification TryingtoComply
RVaughn, CAMS Offline
New Poster
Joined: Dec 2015
Posts: 22
Changing account signers, etc., would be the triggering event.

I guess in my mind I was thinking that because there we must obtain/verify CIP on beneficial owners - we would need to certify or recertify who the owners are so that we know when we have to perform CIP.

That is why I was equating this as a possible CIP exception.

Return to Top
#2203691 - 01/23/19 05:05 PM Re: Benefical Ownership Recertification RVaughn, CAMS
Buddy the Elf Offline
Platinum Poster
Buddy the Elf
Joined: May 2002
Posts: 972
first lily pad on the right
We added Beneficial Ownership procedures to our CIP Procedures so we *would* consider this a CIP exception and treat it the same as we do other CIP exceptions.
_________________________
CAMS

Return to Top
#2203753 - 01/23/19 08:19 PM Re: Benefical Ownership Recertification RVaughn, CAMS
TryingtoComply Offline
Diamond Poster
Joined: Apr 2013
Posts: 1,965
The West
Interesting. Beneficial ownership is in our CDD procedure which is separate from our CIP procedure.

Anyway, using your scenario, you would likely be criticized for not observing your procedure as your procedure indicates that a change to authorized signers will be considered a triggering event.

Changing authorized signers does not always equate to a change in ownership on a legal entity account. We do not consider it a triggering event unless there is an actual change in ownership. Why create extra work?
_________________________
TryingToComply
CRCM

Return to Top
#2203829 - 01/24/19 03:03 PM Re: Benefical Ownership Recertification RVaughn, CAMS
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,700
Cape Cod
This is a good example of how tying CIP and Beneficial Ownership together can unnecessarily create busy work for a bank.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2203874 - 01/24/19 06:22 PM Re: Benefical Ownership Recertification RVaughn, CAMS
JennKK2 Offline
Gold Star
Joined: Nov 2006
Posts: 263
-
our beneficial ownership is separate from our CIP procedures.
a change in authorized signers does not equate a change in ownership, however we'd utilize the knowledge to inquire if there was any change in ownership.
_________________________
plan your Work and Work your Plan

Return to Top
#2203919 - 01/24/19 09:05 PM Re: Benefical Ownership Recertification RVaughn, CAMS
TryingtoComply Offline
Diamond Poster
Joined: Apr 2013
Posts: 1,965
The West
I've worked at a couple banks that combined the collection of CIP information on the same form with CDD information. I have never liked that approach as CIP is a one-time thing, whereas CDD applies to each account opened and is ongoing.

Anyway, shortly after I arrived I changed the forms.
_________________________
TryingToComply
CRCM

Return to Top
#2203952 - 01/24/19 11:23 PM Re: Benefical Ownership Recertification RVaughn, CAMS
Buddy the Elf Offline
Platinum Poster
Buddy the Elf
Joined: May 2002
Posts: 972
first lily pad on the right
We do not define a change in signers as a triggering event so it is not required in all cases. It is used as an opportunity to ask if there was a change in ownership and if so, a new form would be obtained.
_________________________
CAMS

Return to Top
#2204001 - 01/25/19 04:08 PM Re: Benefical Ownership Recertification RVaughn, CAMS
#Just Jay Offline
10K Club
#Just Jay
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
While I agree with your thoughts on it not being indicative of a change in ownership always, how about a change in control? Those two items do not always align together. It is the latter that we have deemed it a trigger event that may require a new cert.
_________________________
I don't repeat gossip, so listen closely...

Return to Top
#2204162 - 01/28/19 07:17 PM Re: Benefical Ownership Recertification RVaughn, CAMS
JennKK2 Offline
Gold Star
Joined: Nov 2006
Posts: 263
-
#Just Jay
oops overlooked that part -CONTROL PRONG may have changed even when a owner does not - again uses the knowledge to inquire.
_________________________
plan your Work and Work your Plan

Return to Top

Moderator:  Andy_Z