FinCEN Publishes BSA-Related FAQs On Second Draw PPP Loans

FinCEN republished certain FAQs that were previously published by the Small Business Administration ("SBA") that clarify how lenders can satisfy their Bank Secrecy Act ("BSA") requirements when issuing Paycheck Protection Program ("PPP") loans. FinCEN stated that the FAQs may be relied upon by lenders as the SBA's interpretation of Section 1102 ("Paycheck Protection Program") of the CARES Act, as well as the PPP Interim Final Rule.

FAQs 3 and 4 reflect guidance that was recently published by the SBA, in consultation with the Treasury, regarding Second Draw PPP Loans. As explained in the FAQs, for purposes of BSA compliance, the information that a lender obtained from a borrower in connection with a First Draw PPP Loan can be relied upon by that lender for a Second Draw PPP Loan application if the borrower is an existing customer. Lenders' decisions regarding the updating of customer due diligence and beneficial ownership information should be made consistent with