31 CFR §1010.230 — Beneficial ownership requirements for legal entity customers (FinCEN CDD rule)

bsa-31cfr-1010-230

FinCEN beneficial ownership / customer due diligence rule for legal entity customers under 31 CFR §1010.230.

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source:
  type: regulation
  id: bsa-31cfr-1010.230
  authority: 31 CFR §1010.230 — Beneficial ownership requirements for legal entity customers (FinCEN CDD rule)
  description: |
    FinCEN beneficial ownership / customer due diligence rule for legal entity
    customers under 31 CFR §1010.230.
obligations:
  - id: bsa-31cfr-1010.230-beneficial-ownership-identify-verify
    canonical_id: bsa-31cfr-1010.230-beneficial-ownership-identify-verify
    section: 31 CFR §1010.230(b) — Identification and verification of beneficial owners
    description: |
      With respect to legal entity customers, [LENDER] (as a covered financial
      institution under §1010.605(e)(1)) shall maintain customer due diligence
      procedures that enable [LENDER] to (1) identify the beneficial owner(s)
      of each legal entity customer at the time a new account is opened (unless
      the customer is excluded under §1010.230(e) or the account is exempted
      under §1010.230(h)), and (2) verify the identity of each beneficial owner
      identified to [LENDER] according to risk-based procedures, containing at
      a minimum the elements required for verifying the identity of individual
      customers under the applicable CIP rule (§1020.220(a)(2) for banks).
    type: do
    audit_question: Can [LENDER] demonstrate, for each legal entity customer that opened a new account, that the beneficial owner(s) were identified at account opening (via appendix A certification or equivalent) AND that the identity of each beneficial owner was verified using risk-based procedures meeting the elements of the applicable CIP rule?
    program_review: Do [LENDER]'s customer-due-diligence procedures ensure that, for each legal entity customer opening a new account, the beneficial owner(s) are identified at account opening (via Appendix A certification or equivalent) AND verified by risk-based procedures meeting the applicable CIP elements — while accounting for the §1010.230(e) excluded customers and §1010.230(h) exempt accounts?
    file_review: Pull a sample of legal-entity new accounts; confirm a beneficial-ownership certification at opening and verification evidence, and spot-check that any (e)/(h) exclusion/exemption invoked was correctly applied.
    judgment: false
    feeds: []
    workflow_phase: customer_onboarding
    owner_role: bsa_aml_officer
    secondary_owner_role: compliance_officer
    cadence: triggered
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - bsa
      - aml
      - cdd
      - beneficial-ownership
      - 31cfr-1010
      - promoted
    primary_source:
      tier: 1
      authority: 31 CFR §1010.230(b)
      source_class: fincen
      source_url: https://www.law.cornell.edu/cfr/text/31/1010.230
      snapshot_id: 9e7e2ba2a7ce2ed7
      fetched_at: '2026-05-22T11:34:05Z'
      content_hash: sha256:b54a4254d474c23f276709adf2e92b6184084493ebc3c781b14567aab13bd417
      paragraph_quote: '(b) Identification and verification. With respect to legal entity customers, the covered financial institution ''s customer due diligence procedures shall enable the institution to:'
      drafter_attestation: |
        Copied verbatim from snapshot 9e7e2ba2a7ce2ed7 (content.txt) at
        2026-05-22T11:35Z. Substring corresponds to §1010.230(b) operative
        headline paragraph introducing the (1) identify and (2) verify duties.
        The Cornell LII oddity "covered financial institution 's" (space before
        apostrophe-s) is preserved verbatim per the drafter contract.
    promoted_at: '2026-05-22T11:37:48+00:00'
    promoted_from: bsa-31cfr-1010.230-roundb-v1.yaml
  - id: bsa-31cfr-1010.230-beneficial-ownership-identify-verify-enumerated-items
    canonical_id: bsa-31cfr-1010.230-beneficial-ownership-identify-verify-enumerated-items
    section: 31 CFR §1010.230(b) — Identification and verification of beneficial owners — enumerated items (chapeau recall fix)
    description: The enumerated provisions following the chapeau of 31 CFR §1010.230(b) — Identification and verification of beneficial owners, dropped by the original extraction and restored verbatim from the snapshot.
    type: do
    audit_question: ''
    program_review: ''
    file_review: ''
    judgment: false
    feeds: []
    workflow_phase: ''
    owner_role: ''
    secondary_owner_role: ''
    cadence: ''
    consequence: ''
    tags:
      - chapeau-recall
      - regulator-direct
      - promoted
    primary_source:
      tier: 1
      authority: 31 CFR §1010.230(b)
      source_class: fincen
      source_url: https://www.law.cornell.edu/cfr/text/31/1010.230
      snapshot_id: 9e7e2ba2a7ce2ed7
      fetched_at: '2026-05-22T11:34:05Z'
      content_hash: sha256:b54a4254d474c23f276709adf2e92b6184084493ebc3c781b14567aab13bd417
      paragraph_quote: (1) Identify the beneficial owner(s) of each legal entity customer at the time a new account is opened, unless the customer is otherwise excluded pursuant to paragraph
      drafter_attestation: Captured verbatim (whitespace-normalized) from snapshot 9e7e2ba2a7ce2ed7 as the enumerated list immediately following the chapeau 'cedures shall enable the institution to:'. List boundary captured conservatively — REVIEW the end boundary before promote.
    promoted_at: '2026-06-16T19:35:50+00:00'
    promoted_from: bsa-31cfr-1010.230-chapeau-recall-v1.yaml
    source_provenance:
      source_id: bsa-31cfr-1010.230
      fetched_at: '2026-05-22T11:34:05Z'
      content_hash: sha256:b54a4254d474c23f276709adf2e92b6184084493ebc3c781b14567aab13bd417
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    candidates_promoted: 1
    candidates_skipped_existing: 0
  - promoted_at: '2026-06-16T19:35:50+00:00'
    candidate_path: C:\Users\earlc\broker-tools\obligations\_remediation\chapeau-recall\bsa-31cfr-1010.230-chapeau-recall-v1.yaml
    candidates_promoted: 1
    candidates_skipped_existing: 0
  - promoted_at: '2026-06-16T19:38:22+00:00'
    candidate_path: C:\Users\earlc\broker-tools\obligations\_remediation\chapeau-recall\bsa-31cfr-1010.230-chapeau-recall-v1.yaml
    candidates_promoted: 0
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  - promoted_at: '2026-06-16T19:39:10+00:00'
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Verbatim regulatory text (2)

Verbatim provisions from 31 CFR §1010.230 — Beneficial ownership requirements for legal entity customers (FinCEN CDD rule) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

31 CFR §1010.230(b) — Identification and verification of beneficial owners

(b) Identification and verification. With respect to legal entity customers, the covered financial institution 's customer due diligence procedures shall enable the institution to:

Source: 31 CFR §1010.230(b) · source URL · snapshot 9e7e2ba2a7ce2ed7

31 CFR §1010.230(b) — Identification and verification of beneficial owners — enumerated items (chapeau recall fix)

(1) Identify the beneficial owner(s) of each legal entity customer at the time a new account is opened, unless the customer is otherwise excluded pursuant to paragraph

Source: 31 CFR §1010.230(b) · source URL · snapshot 9e7e2ba2a7ce2ed7