What: On February 13, 2026, the Financial Crimes Enforcement Network (FinCEN) published an order granting exceptive relief to covered financial institutions from the agency’s Customer Due Diligence Requirements for Financial Institutions rule (the “2016 CDD Rule”). The order excepts covered financial institutions from the requirement to identify and verify the beneficial owners of a legal entity customer each time the customer opens a new account.
Why: Under the order, a covered financial institution is required to identify and verify the beneficial owners of a legal entity customer in only the following circumstances:
- When a legal entity customer first opens an account with the institution.
- When the institution has knowledge of facts that reasonably call into question the reliability of previously obtained beneficial ownership information.
- As otherwise required based on the institution’s risk-based procedures for ongoing customer due diligence.
FinCEN assessed that relieving covered financial institutions of the obligation to identify and verify a legal entity customer’s beneficial owner at each new account opening is unlikely to undermine the Bank Secrecy Act’s (BSA) risk-based framework. In FinCEN’s view, this relief supports a more efficient, risk-based approach to customer due diligence and reduces unnecessary regulatory burden without weakening the foundational requirements that protect the U.S. financial system.
Action: The Order took effect Feb. 13, 2026.
EXCEPTIVE RELIEF ORDER:
Exceptive Relief from Requirement to Identify and Verify Beneficial Owners at Each Account Opening (PDF)
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