News and Resources

BuckleySandler Webinar: Customer Due Diligence

  • June 23, 2016
  • 12:00 PM ET - 1:00 PM ET

On May 11, 2016, after a four-year rulemaking process, FinCEN published a final rule codifying new and existing customer due diligence (CDD) requirements for covered financial institutions. The rule, which is framed as an enhancement to existing CDD responsibilities, requires financial institutions to collect and verify beneficial ownership information for most types of legal entity customers opening new accounts. The rule also adds a “fifth pillar” formalizing the requirement to develop and keep current customer risk profiles and conduct ongoing monitoring.

The rule was finalized in the wake of the Panama Papers, (as well as the recent U.S. FATF evaluation), which highlight transparency issues and financial crime risks that arise out of the use by individuals of limited liability companies, trusts and foundations incorporated in offshore tax havens from Hong Kong to Nevada to expatriate wealth. Even before the release of the Panama Papers, which arguably provided a fresh impetus for the final CDD rule, Treasury officials had long raised the need for financial institutions to address risks of money laundering, terrorist financing and other crime by identifying individuals who clandestinely control these entities.

Please join BuckleySandler and invited panelists for a discussion of the final CDD rule, the intersection of AML, tax evasion and foreign corruption issues raised in the Panama Papers, and the implications of both of these for U.S. financial institutions.

Panelists:

  • Kyle Erck, Vice President of BSA/AML Program Governance Manager, TCF Bank
  • Young Lee, Senior Policy Advisor in the Office of Terrorist Financing and Financial Crimes, U.S. Department of the Treasury
  • Atul K. Sood, Senior Vice President, Global KYC, Citigroup, Inc.

The discussion will address the following topics:

  • What should covered financial institutions be doing to prepare for the May 2018 compliance deadline?
  • How will the rule impact client acceptance procedures?
  • The rule has been described as a floor and not a ceiling. In what circumstances would financial institutions be expected to go beyond minimum requirements?
  • What types of circumstances would trigger an obligation to update customer information as part of the ongoing monitoring process, as contemplated in the rule?
  • How can issues highlighted in the Panama Papers be addressed through AML measures, including those that will be required by the CDD rule?


Moderator:

James T. Parkinson focuses on international regulatory compliance counseling, corporate internal investigations, and enforcement defense litigation. He represents clients on a variety of criminal and civil enforcement actions, including Foreign Corrupt Practices Act (FCPA), securities fraud, insider trading, false statements, and environmental matters.

When: Thursday, June 23, 2016 from 12:00 to 1:00 pm ET

Complimentary Registration:
https://attendee.gotowebinar.com/register/3451381668526108932
Registration is required. Please, no outside law firms, government agency personnel, consulting firms, or media. After registering and being approved, you will receive a confirmation email containing instructions for joining the webinar.

About BuckleySandler
With more than 150 lawyers in Washington, DC, New York, Los Angeles, Chicago, and London, BuckleySandler provides best-in-class legal counsel to meet the challenges of the nation's leading financial institutions, corporations, and individual clients. BuckleySandler provides legal advice on government enforcement actions, complex and class action litigation, and transactional, regulatory, and public policy issues.