Agency Wants Unified Due Diligence Rules

     WASHINGTON (CN) – The Financial Crimes Enforcement Network wants public input to help it decide on the minimum amount of customer information money services businesses should have to report to deter money-laundering schemes.


     While customer due diligence requirements already exist for heavily regulated entities like banks and brokerage firms, the identification requirements for second tier money service businesses are more fragmented.
     FinCEN is therefore asking insurance companies, casinos, dealers in precious metals, stones and jewels, and non-bank mortgage lenders or originators to comment on the kind of information they collect to correctly identify their customers.
     In an advance notice of proposed rule making, FinCEN said that even for institutions already subject to the Banking Secrecy Act – who must file suspicious transaction reports – clearer customer identification reporting requirements would be beneficial.
     FinCEN is a bureau of the Department of the Treasury charged principally with detecting and deterring financial crimes like money-laundering and funding of terrorist organizations under the Currency and Financial Transactions Reporting Act.
     The public has until May 4 to provide FinCEN with comments on customer due diligence requirements.

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