FinCEN Issues New FAQ On CDD Requirements For Covered Financial Institutions

FinCEN issued new guidance on customer due diligence (“CDD”) requirements for covered financial institutions. FinCEN addressed the (i) collection of customer information, (ii) creation of customer risk profiles and (iii) requirement to perform ongoing monitoring of customer relationships.
Customer Information – Risk-Based Procedures
FinCEN clarified that covered financial institutions are not categorically required to (i) collect particular information beyond what is required to develop a customer risk profile, conduct ongoing monitoring and identify beneficial owners, (ii) conduct media […]

By | August 5th, 2020 ||

Trade Associations Tout Digitization Of Financial Markets

ISDA and several other industry group associations (the “Associations”) expressed their joint commitment to moving financial markets toward a “digital future.”

In a letter addressed to the Financial Stability Board, IOSCO and the Basel Committee on Banking Supervision, the Associations emphasized the benefits of new technology. The Associations stated that moving towards a digital future will result in (i) standardized risk management processes and the introduction of “real-time regulatory oversight,” and (ii) more efficient operational processes in […]

By | August 3rd, 2020 ||

Accounting For PPP Loans

The Coronavirus Aid, Relief, and Economic Security (CARES) Act created the Paycheck Protection Program (PPP) to provide eligible entities, including small businesses and not-for-profit (NFP) organizations, with liquidity to support their operations and to keep their employees paid. PPP loans may be forgiven, in whole or in part, if certain conditions are satisfied including spending the PPP funds on qualifying expenses and maintaining specified levels of payroll and employment. Entities who borrow PPP funds […]

By | July 25th, 2020 ||