Compliance: Exemptions, exceptions for new CDD rule

by America's Credit Unions

The May 11 effective date of the new Customer Due Diligence (CDD) rule is approaching, after which credit unions will be required to obtain identifying information about the beneficial owners of their legal entity accounts.

A recent CUNA CompBlog post details some of the rule’s exceptions and exemptions.

The rule defines beneficial owners as:

  • Each individual, if any, who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, owns 25% or more of the equity interests of a legal entity customer: and

 

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