FinCEN issues additional FAQs to address questions regarding customer due diligence requirements for covered financial institutions - 21 August 2020

NFA Notice I-20-31

On August 3, 2020, the Financial Crimes Enforcement Network (FinCEN), in consultation with the federal functional regulators, published new Frequently Asked Questions (FAQs) on its website regarding customer due diligence (CDD) requirements for covered financial institutions. These FAQs clarify the regulatory requirements related to obtaining customer information, establishing a customer risk profile, and performing ongoing monitoring of the customer relationship in order to assist covered financial institutions with their compliance obligations. These FAQs are in addition to those FinCEN previously published on July 19, 2016 and April 3, 2018.

NFA Member FCMs and IBs should review these additional FAQs to ensure that their AML programs address regulatory obligations related to CDD.