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Can you summarize 31 CFR 1010.230?
Programs > Beneficial ownership requirements for legal entity customers.
Short Summary
This document sets forth the beneficial ownership requirements for legal entity customers that covered financial institutions must adhere to. Covered financial institutions are required to establish and maintain written procedures to identify and verify the beneficial owners of legal entity customers as part of their anti-money laundering compliance program. The procedures must enable the institution to identify the beneficial owner(s) at the time a new account is opened and verify their identity according to risk-based procedures. The document provides definitions for beneficial owner and legal entity customer, and specifies certain exemptions from the requirements. Covered financial institutions must also establish recordkeeping procedures to retain information obtained during the identification and verification process. The document allows covered financial institutions to rely on the performance of another financial institution that meets certain criteria. Overall, the document aims to enhance transparency and prevent money laundering activities within the financial system.
Whom does it apply to?
Covered financial institutions
What does it govern?
Beneficial ownership requirements for legal entity customers
What are exemptions?
Exemptions include certain financial institutions, issuers of registered securities, registered investment companies, registered investment advisers, and various other entities specified in the document.
What are the Penalties?
Penalties for non-compliance are not specified in the document.
Jurisdiction
U.S. Federal Government