Question:

Do you have any guidance on this article released by the Financial Crimes Enforcement Network (FinCEN)? Do credit unions still need to collect beneficial ownership information from business members? Or do we only collect information for “reporting companies” as defined by the new rule?

Answer:

Great Question! credit unions must still collect beneficial ownership information (BOI) as usual when opening new accounts and sub-accounts for legal entity customers. The new changes outlined by FinCEN only apply to entities that are required to file BOI directly with FinCEN.

• The section of regulation that requires entities to report BOI information directly to FinCEN is 31 CFR 1010.380
• The section of regulation to requires financial institutions to identify and verify beneficial owners of legal entity customers is 31 CFR 1010.230

Section 1010.380 is the only part of FinCEN regulation that was revised. Section 1010.230 remains as it has been for the past seven years. It’s business as usual for credit unions collecting beneficial ownership certifications from legal entity customers.