Effective July 11th of 2016, FinCEN will require that financial institutions keep a closer eye on its new and existing customers. A legal entity when opening a new account will be required to disclose any beneficial owners who either owns more than 25% or is the single individual who exercises control of the company.

In addition, the new rule amends the Anti-Money Laundering Program rule to require that financial institutions implement risk-based procedures for conducting ongoing customer due diligence, i.e. monitoring and reporting suspicious transactions.

In other words, FinCEN is requiring that financial institutions flag and report any perceived “suspicious” activity as well as verify the identities of beneficial owners of their clientele.

It is important for business owners and financial institutions alike to understand the implications and effects this new rule may have on the way they conduct business. At the Law Office of Ramon de la Cabada, we are experienced in advising clients and assisting in the implementation of of measures to avoid future inquiries or investigations.