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More U.S. Financial Institutions Facing AML Requirements

With the new FinCEN regulations in place, more U.S. Financial Institutions just became subject to stricter AML requirements.

AuthorGregory Vint, September 22nd, 2020

For several years, almost all U.S. financial institutions have been subject to strict AML compliance requirements. Failure to follow these requirements can have severe consequences - including loss of an institution's ability to conduct business. However, some financial institutions have not been subject to these requirements. Now with new FinCEN regulations in place, the situation is changing.

Until now, over 500 banks, savings associations, credit unions, and trust companies without a Federal regulator were exempt from these requirements. But the Financial Crime Enforcement Network, FinCEN (FinCEN), announced that next year these institutions must have an AML program appropriate for the institution's size and type of business.

One requirement for a strong AML program is a process to verify the identity of both retail customers and beneficial owners of business customers, a Customer Identification Program (CIP). This may not be much of a burden for institutions that meet their customers in person, but with more and more financial transactions taking place in a digital environment, regulators will expect these institutions to have digital solutions to meet this challenge. Veriff provides this solution.

Veriff offers state of the art, leading technology to verify identities quickly and accurately. According to the FinCEN announcement, many of these institutions are small. Also, FinCEN expects the new AML processes to require 30 or 40 minutes to complete. Identity verification from Veriff can help minimize this time.

In addition, Veriff can support an institution's compliance requirements by offering support from due diligence through examination so the CIP portion of the AML program can be implemented well before the compliance deadline.

Compliance programs can be costly for financial institutions. Veriff is a cost effective solution for meeting this new regulation.

Gregory Vint

Legal Counsel

Gregory is a Legal Counsel at Veriff. Before joining Veriff, Gregory was in-house counsel at USAA Federal Savings Bank, ExxonMobil and a regulatory attorney at the Federal Deposit Insurance Corporation. He also worked on the syndicated loan desk at Beal Bank and the fixed income desk at JP Morgan. He has a law degree from the University of Texas, a B.A. from Rice University, and is admitted to the State Bar of Texas.

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