So, has the proposal from 2014 been made official? That is the one covering beneficial ownership and EDD, etc. I searched and didn't find evidence of that. Also, the notion of the 5th pillar was incorporated in that proposal? Did that notion exist prior to the proposal?

No. No idea.

Last week I heard a FinCEN presenter say this one would have a long gestation period.

They only got 129 comment letters, but several of them made points that it was obvious to me that FinCEN never considered. Not certain their road show accomplished anything, anything at all.

The comment period came and went, but I haven't heard if they've released anything subsequent to the NPRM.

One of the roadblocks, I think, is the proposed requirement that verification of ID for identified beneficial owners/managers would have to at least be the equivalent to the ID verifiction done under CIP for individual customers. It's been pointed out that without personal written authorization from the four or five identified individuals, it would be a FCRA violation to pull a credit report on them.

We have been proactive in trying to obtain the beneficial owners. However, when you have an entity that is managed by another entity, and then managed by various entities, where do you draw the line? Do you just CIP the "signers" because they are your "customers?"

Keep drilling down until you get the names of individuals; i.e. people who own the original entity. (That's easier said than done.)

We identify signatories for banking, not AML purposes. A signatory may not be a decision maker.

We follow

http://www.fincen.gov/statutes_regs/frn/pdf/1506-AB15_CDD%20ANPRM.pdf

1) either:
For purposes of the CDD
program requirement discussed above, and not affecting the limited instances in which
beneficial ownership information is currently required, FinCEN is considering a
definition to be used that would, in the case of legal entities, include:
(a) each of the individual(s) who, directly or indirectly, through
any contract, arrangement, understanding, relationship, intermediary,
tiered entity, or otherwise, owns more than 25 percent of the equity
interests in the entity; or
(b) if there is no individual who satisfies (a), then the individual
who, directly or indirectly, through any contract, arrangement,
understanding, relationship, intermediary, tiered entity, or otherwise, has
at least as great an equity interest in the entity as any other individual,
and
(2) the individual with greater responsibility than any other individual for
managing or directing the regular affairs of the entity.


It is noted that this is only the

Advance notice of proposed rulemaking. (there should be a better citation)

Past two foreign owned banks I worked for followed this but drilled down to 10% instead of the 25%