Get management to OK the policy change now and get board ratification when you can.

I did a memo to the Bank's Executive Committee yesterday regarding the PPP loans versus policy. It was being uploaded to our board portal yesterday for approval. That was the quickest way we thought to handle this.

Amen

Management decided they wanted a deposit account for the PPP loan disbursements. I’m getting conflicting information about whether or not the the Ben Ownership re-verification can be extended to the disbursement accounts.

Has anyone heard from FinCEN or their regulator on this point?

I went ahead and emailed FinCEN. They’ve never responded this quick.

From FinCEN
If the new account is being opened solely for purposes of receiving, disbursing or otherwise using the PPP loan funds, and if the lender has not yet collected beneficial ownership information on the existing customer, the lender does not need to collect and verify beneficial ownership information for those customers applying for PPP loans, unless otherwise indicated by the lender’s risk-based approach to BSA compliance.

I'm betting that the bank's wish to get a checking account as part of the deal doesn't limit the use of the account to "receiving, disbursing or otherwise using the PPP loan funds." The bank wants the borrower to have some additional connection to the bank besides the PPP loan, in the expectation of something more substantial when the pandemic is behind us and the borrower is successfully recovering and perhaps flourishing as the economy regains some semblance of whatever the new normal becomes.

If that's the case, I don't see the response from FinCEN gives you cover to omit obtaining BO info for the deposit accounts.

But, if I am wrong, and the deposit account is just for disbursing the PPP proceeds (does that make it PPPP or 4P?), you're good.

Yep. That was my concern. So much easier just to follow the dang rule.

sooooo, if our bank, for existing customers, is not obtaining BOC or re-verifying BOC - is the bank required to make a statement on a plan to ATTEMPT to go back and follow up on collecting BOC information at a future date?

Not that I can see. If there's a change to the PPP loan -- an extension or renewal, I think your regular procedures for BOC should kick in. Otherwise, the guidance in the FAQ seems to say "no need."

thank you John - working from home so trying to use all the resources i can to thoroughly understand what we're all doing

And good luck on that!