FinCEN's new beneficial ownership rule, a look at FTC jurisdiction, and more in this issue of Consumer Financial Services Practice Digest

3 min

cash and handcuffs

Ten Practical Tips for FinCEN's New Beneficial Ownership Rule

Starting May 11, 2018, financial institutions will need to implement new policies and procedures to comply with FinCEN's new Customer Due Diligence Requirements for Financial Institutions (the Rule), which require covered financial institutions to identify and verify the identity of beneficial owners of legal entity customers. To help institutions get ready, FinCEN issued FAQs on April 3, 2018, to explain and clarify the scope of the Rule. This article summarizes the Rule and provides ten practical tips for those financial institutions still working to update their policies in advance of the Rule's effective date.

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You, Me, and Everyone You Know – The Impact of FinCEN's Beneficial Ownership Requirements

Andrew Bigart published a two-part series in Payment Facilitator that discusses the impact of FinCEN's beneficial ownership requirements. Part I discusses how the rule affects banks and their payment facilitator relations. The second installment dives into how the rule applies to banks acting as an originating depository financial institution for ACH transactions and their relationships with originators, third-party service providers, and third-party senders.

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Is Past Prologue for FTC Jurisdiction?

A recent decision in an antitrust case brought by the FTC in the U.S. District Court for Delaware could significantly limit the FTC's ability to bring consumer protection cases in federal court and return the FTC to an enforcement model that it largely abandoned in the early 1980's. In that case, the court held that the FTC can only sue in federal court where it is able to allege that the defendant is violating or about to violate a law the FTC enforces. This decision, if broadly accepted, could severely limit the ability of the FTC to pursue cases in federal court for companies that are only accused of past violations by the FTC.

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CFPB Requests for Information Tracker

The CFPB has published in the Federal Register a series of Requests for Information (RFIs) seeking comment on enforcement, supervision, rulemaking, market monitoring, and education activities. The RFIs will provide an opportunity to submit feedback and suggest ways to improve outcomes for both consumers and covered entities.

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April 25-27, 2018: "Consumer Financial Services Legal and Regulatory Update," at the 2018 Financial Counseling Association

May 2, 2018: "Compliance in Action: Use Case Workshop," at MBA's Legal Issues and Regulatory Compliance Conference 2018

May 11, 2018: "Hot Topics in Financial Services Litigation and Enforcement," at ACI's Women Leaders in Financial Services Law and Compliance Event

May 15, 2018: "Lucia v. SEC – What Does the Decision Mean for the Consumer Financial Services Industry?" a Venable Hosted Webinar

May 17, 2018: "The Chief Compliance Officer Perspective," at COMPLY2018 Conference

July 24, 2018: "CFPB/FTC Debt Collection Update," at ACA International 2019 Convention