FinCEN Clarifies Beneficial Ownership Expectations for PPP Loans

Posted: Apr 08 2020

The Financial Crimes Enforcement Network has issued a statement regarding banks’ Bank Secrecy Act obligations during the pandemic, including beneficial ownership requirements for banks issuing loans under the PPP. FinCEN clarified that banks will not be required to reverify beneficial ownership information for PPP loans made to existing customers “unless otherwise indicated by the institution’s risk-based approach to BSA compliance.”
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FinCEN also reminded banks of a 2018 ruling providing certain exceptive relief from the beneficial ownership rule, and noted that it would “continue to assess reasonable risk-based approaches to BSA obligations and will issue further information, as appropriate, particularly as the CARES Act is implemented.”
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In addition, recognizing the operational challenges many banks are facing due to COVID-19, FinCEN also said it would temporarily suspend a February 2020 ruling on currency transaction reporting requirements for reporting transactions involving sole proprietorships and entities operating under a “doing business as” name until further notice. Banks that have not yet made necessary changes to comply with the 2020 ruling should continue reporting these transactions based on prior practices.

To read more visit: https://www.fincen.gov/news/news-releases/financial-crimes-enforcement-network-provides-further-information-financial