US: FACTSHEET – BANK SECRECY ACT DUE DILIGENCE REQUIREMENTS FOR CUSTOMERS THAT ARE CHARITIES AND NPO SHOULD BE BASED ON THE MONEY LAUNDERING RISKS POSED BY THE CUSTOMER RELATIONSHIP

A release on Mondo Visione on 19 November reported that federal financial institution regulatory agencies have issued a joint fact sheet clarifying that bank and credit union compliance efforts to meet Bank Secrecy Act due diligence requirements for customers that are charities and other non-profit organisations should be based on the money laundering risks posed by the customer relationship.  It stresses that that charities and NPO as a whole do not present a uniform or unacceptably high risk of being used or exploited for money laundering, terrorist financing, or sanctions violations, and that banks and credit unions must develop risk profiles that are appropriate for the risks presented by each customer.  It provides examples of customer information that may be useful to banks and credit unions in determining those risk profiles.

https://www.federalreserve.gov/newsevents/pressreleases/files/bcreg20201119b1.pdf

https://www.federalreserve.gov/newsevents/pressreleases/bcreg20201119b.htm

I had omitted the following link (as it did not seem to generate much interest!), but it seemed time to add it again and say that, if you would like to make a (polite) gesture and help me with my removal and computer costs, I have a page at https://www.buymeacoffee.com/KoIvM842y

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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