Dallas, Texas – GIACT Systems®, the leader in helping companies positively identify and authenticate customers, today announced the launch of Beneficial ID™ – a comprehensive digital platform built to directly address the Financial Crimes Enforcement Network (FinCEN), U.S. Department of the Treasury ruling requiring additional Customer Due Diligence (CDD) on financial institutions’ legal entity customers’ beneficial ownership. Beneficial ID is the first all-in-one digital solution to provide beneficial ownership information collection and KYC, OFAC verification.
The new CDD requirements have compliance implications for financial institutions, including banks, mutual funds, issuers, credit unions, money service businesses, etc., that engage in B2B transactions as well as their legal entity customers, including corporations, LLCs, limited partnerships, general partnerships, business trusts, etc., formed inside and outside the U.S.
According the FinCEN, a “beneficial owner” includes individuals who own 25% or more of the equity interest of the legal entity and / or an individual with significant responsibility to control the legal entity at the time a new account is opened. The rule is effective May 11, 2018 and will have an immediate impact on applicable new account openings.
Previously, financial institutions were not required to identify the beneficial owner(s) of their legal entity customers, making it possible for individuals to remain anonymous.
With its collection and processing capabilities, Beneficial ID will significantly streamline the estimated over $250 million FinCEN projects financial institutions will spend on staff training in the first year of implementation.
The new beneficial ownership requirements will be very labor-intensive for many financial services firms unless they can find ways to automate a substantial portion of it. The upfront and ongoing data requirements also have potential adverse impacts to the customer experience. GIACT’s solution addresses both of these challenges, automating the data collection and verification in a customer-friendly manner.
Improving the processing and verification aspects of beneficial ownership, Beneficial ID is an efficient solution for financial institutions to:
- Process Beneficial Ownership form(s), including certifications
- Meet OFAC and KYC requirements
- Collect and verify the beneficial owner(s) of a legal entity customer
Beneficial ID acts as a single solution to achieve compliance. The alternative is dedicating considerable time and resources to collecting and verifying information by hand.
Beneficial ID will also expand the GIACT EPIC Platform™ product suite, which offers businesses a complete set of enrollment, payment, identity and compliance solutions.