FinCEN extends exceptive relief 30 days for auto-rollover accounts under beneficial ownership rule

Exceptive relief for financial institutions regarding accounts that automatically rollover or renew, such as certificates of deposit or loan accounts, from obligations of the Financial Crimes Enforcement Network (FinCEN) beneficial ownership rule has been extended 30 days to Sept. 8, FinCEN announced Wednesday.

The relief was first issued May 16 for accounts that were established before the beneficial ownership rule’s applicability date of May 11, 2018. FinCEN issued the 90-day limited exception in order to determine whether, and to what extent, a further exception would be appropriate for such products and services. The exception expires Aug. 9 (Thursday), but when it was first established, FinCEn said it could be extended, modified or revoked at FinCEN’s discretion.

“FinCEN is extending the limited exception for an additional 30 days, up to and including September 8, 2018, from the obligations of the Beneficial Ownership Rule for rollover or renewal of certain financial products and services (i.e., certificate of deposit or loan accounts) that were established before May 11, 2018 to further consider the issue,” the agency said in Wednesday’s announcement.

Extension of Limited Exception from Beneficial Ownership Requirements for Legal Entity Customers of Certain Financial Products and Services with Rollovers and Renewals