Skip to content

Beneficial Ownership Certification Collection

Answered by: 

Question: 
We think we heard Brian Crow say, at TopGun Mar. 2020), that if we acquire a loan from a non-covered institution, that did not collect Beneficial Ownership certification from a legal entity borrower, we now must do so. I'm looking for citation of that requirement in Regs or guidance etc. We're about to do exactly that scenario.
Answer: 

I remember that question and the response.

I recall answering that accounts obtained via a purchase of assets (including from a non-covered institution) are not considered accounts or new accounts under both the CIP and Beneficial Ownership rules.

Brian then added (and these are his words from a confirming email today): "The beneficial ownership rule uses the same definition of 'account' as the USA PATRIOT Act. The CIP section of the BSA Examination Procedures cites that an account does not include, 'Any account that the bank acquires. This may include single or multiple accounts as a result of a purchase of assets, acquisition, merger, or assumption of liabilities.'

"What was discussed during Top Gun was a response that FinCEN provided via a question to the helpline which notes that even for acquired assets, if one of the loans renews and is not covered by the exceptive relief from September 2018, the Bank would still be required to treat the renewal of an acquired account as a new account and obtain a beneficial ownership certification at the time the account renews."

First published on 04/19/2020

Filed under: 
Filed under compliance as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics