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Can you summarize Assessing Compliance with BSA Regulatory Requirements > Customer Due Diligence (2018)?
Assessing Compliance with BSA Regulatory Requirements > Customer Due Diligence (2018)
Short Summary
This document outlines the regulatory requirements for customer due diligence (CDD) in the banking sector. It emphasizes the importance of adopting risk-based CDD policies, procedures, and processes to understand the nature and purpose of customer relationships, particularly those presenting a higher risk for money laundering and terrorist financing. The document highlights the need for ongoing monitoring to identify and report suspicious transactions and maintain updated customer information, including beneficial ownership information for legal entity customers. It also emphasizes the importance of customer risk profiling and the assessment of specific risk categories such as products and services, customers and entities, and geographic locations. The document provides guidance on collecting and analyzing customer information based on the customer’s risk profile and highlights the importance of enhanced due diligence for higher risk profile customers. It also emphasizes the requirement for ongoing monitoring of customer relationships and the event-driven update of customer information. The document encourages banks to implement CDD policies, procedures, and processes on an enterprise-wide basis and to cross-check customer information across business lines and affiliated support units. Overall, the document aims to ensure compliance with CDD requirements and promote safe and sound banking practices.
Whom does it apply to?
All banks
What does it govern?
Customer due diligence (CDD) requirements for financial institutions
What are exemptions?
Exemptions are mentioned for certain customers that are exempted or not included in the definition of legal entity customers, such as certain trusts or certain other legal entity customers.
What are the Penalties?
No specific penalties are mentioned in the document.
Jurisdiction
U.S. Federal Government