The U.S. Treasury Department's Financial Crimes Enforcement Network on July 19 issued frequently asked questions regarding recently adopted customer due diligence requirements for financial institutions. Those requirements will take effect in May 2018 and will apply to futures commission merchants and introducing brokers as well as securities brokers, banks and mutual funds. The FAQ provides interpretive guidance to help firms comply with the new requirements, which include a requirement to identify and verify the identity of beneficial owners of legal entity customers. Currently, U.S. anti-money laundering regulations do not require covered financial institutions to identify the individuals that own or control their legal entity customers.
