FinCEN's Temporary Relief For Autorenewable CDs And Loans

In a unique administrative ruling under delegated "exceptive" authority, on May 16, 2018 FinCEN issued relief from its new beneficial ownership requirements through at least August 9, 2018, for "certain financial products and services that automatically rollover or renew (i.e., certificate of deposit (CD) or loan accounts) and were established before the Beneficial Ownership Rule's Applicability Date, May 11, 2018."

FinCEN acknowledged in its notice that "some covered institutions have not treated such rollovers or renewals as new accounts and have established automatic processes to continue the banking relationship with the customer."

The exception is effective retroactively from May 11, 2018 and expires on August 9, 2018. FinCEN added that it was considering whether additional relief may be appropriate for such products and services established prior to May 11, 2018 and expected to rollover or renew thereafter.