The 90-day limited exceptive relief FinCEN issued to financial institutions following the implementation of the updated Beneficial Ownership/CDD rule was set to expire on August 9. Just in the nick of time, FinCEN issued a 30-day extension of the exceptive relief, now set to expire on September 8. As a reminder, this is specifically aimed at certain financial products and services that automatically rollover or renew (CDs, loan accounts, etc.) that were established before the original Beneficial Ownership deadline of May 11.
With the extension, FinCEN is expected to “determine whether and to what extent additional exceptive relief may be appropriate” for these financial products and services. (Read the full administrative ruling here.) This exception may be "extended, modified or revoked at FinCEN's discretion" so FIs should still have policies and procedures in place to deal with these products.
As we stated with the initial exceptive relief, this doesn't relieve FIs of the beneficial ownership obligations in regard to these products/services. It is just giving FinCEN an additional 30 days to determine how they want to handle the Beneficial Ownership requirements for these types of accounts moving forward.
