ABA Applauds FinCEN Exceptive Relief Order Streamlining Customer Due Diligence Requirements

“We applaud today’s FinCEN exceptive relief order streamlining Customer Due Diligence requirements, which will significantly reduce unnecessary compliance burden for America’s banks and the customers they serve while maintaining strong protections against illicit finance. As we indicated in a 2024 letter to FinCEN, U.S. banks open between 140 and 160 million new accounts every year. By shifting CDD obligations to a customer’s initial onboarding — rather than requiring it every time a new account is opened — and updating it as needed based on risk, FinCEN has taken an important step toward a more efficient, risk-focused regulatory approach that allows banks to devote resources to detecting and preventing illicit financial activity rather than duplicative compliance exercises. ABA has long advocated for these changes, and we appreciate FinCEN’s indication that it plans to incorporate them into an updated version of the 2016 CDD rule.”

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