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The New CDD Rule: Will Time Catch Up to You?

October 12, 2016
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New Customer Due Diligence Requirements: A Race Against the Clock

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Like dog years, “compliance years” seem to pass by quickly. Therefore, in regard to the May 2018 deadline for the new CDD regulation, two years is not as long as it seems.

In a recent article on Banking Exchange, Maleka Ali, the Director of Consulting here at Banker’s Toolbox, said that bankers need to move more quickly than they are. When it comes to making the changes that will be needed to comply with the new rule, financial institutions need to give themselves plenty of time.

Communication will be essential, said Maleka, and a task force will need to be created within the institution in order to get the necessary departments involved. That includes the board of directors and upper management – necessary parties for building a strong culture of compliance.

As we have seen before, the cost of non-compliance is far more expensive than the cost to comply. If a bank winds up with a regulatory penalty from FinCEN, it will certainly impact the board both financially and reputationally, says the article (click here to read the full article on Banking Exchange).

 

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