Treasury Eyes Update to Customer Due Diligence Rule

July 11, 2024 |Other U.S.

The Treasury Department is drafting revisions to its customer due diligence (CDD) rule and hopes to “get something out this fall,” Treasury Secretary Janet Yellen said July 9.

“We’re engaging right now with other stakeholder agencies to discuss the substance of the proposal, and we want to have a notice that will enable the public to weigh in with their own comments,” Yellen testified before the House Financial Services Committee.

The Corporate Transparency Act (CTA) of 2021 calls for updating the CDD rule, which was published in 2016 and requires banks and other financial institutions to verify the identities of people who own and control companies that open accounts. Enacted to curb illicit finance, the CTA also mandates the new beneficial ownership information reporting rule, which requires many companies to submit information on who owns and controls them (see 2401050023).