FTC Staff Comment on Financial Crimes Enforcement Network’s Proposed Customer Due Diligence Rule for Financial Institutions

Matter Number:

P124402

Summary

FTC staff filed a comment on a Notice of Proposed Rulemaking published by the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury, supporting the proposed Customer Due Diligence Rule. Among other requirements, the proposed rule would require financial institutions to collect information on the individuals who are the beneficial owners of a legal entity when the entity opens an account. The comment notes that the proposed Rule should improve the FTC’s ability to track down those perpetrating fraud against consumers in situations where individuals used legal entities or "shell" companies to disguise their involvement with fraudulent operations.