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Long-awaited customer due diligence AML rule under review by White House

Apr 14 2014 Brett Wolf, Compliance Complete

A proposed rule aimed at requiring banks, broker-dealers and others to do more to determine who is behind accounts belonging to corporations and other legal entities cleared the Treasury Department's interagency process and came under review by the White House on Friday. Still, it is likely to be at least 90 days before the proposal is aired publicly, sources familiar with the proposal said. Details of the long-awaited proposal – which one Treasury official had said would be released for public comment more than a year ago – remain unavailable. One of the many questions that remain is whether financial institutions will be required to simply request information from account holders or if they will also have to verify the responses. This rule-making process, underway since early 2012, is currently the most significant in U.S. anti-money laundering policy agenda, due to the potential costs associated with compliance. The proposal is expected to include a requirement to determine

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