Publication Information

November, 2014; Butterworths Journal of International Banking and Financial Law.


The Financial Crimes Enforcement Network, a bureau within the U.S. Department of the Treasury tasked with combating money-laundering and other illicit uses of the financial system (FinCEN), has issued a proposed rule that clarifies and systematizes customer due diligence (CDD) program requirements for certain financial institutions (the “Proposed Rule”).


The Proposed Rule applies only to Covered Financial Institutions (CFIs) that are subject to existing Customer Identification Program (CIP) requirements: (1) banks, (2) securities brokers or dealers, (3) mutual funds, and (4) futures commission merchants and introducing brokers. FinCEN has expressed “continued interest” in “potentially extending” the Proposed Rule to additional entities, such as casinos, money services businesses and insurance companies.


If issued in final form, the Proposed Rule would take effect one year from the date of the issuance of the final rule.