What should be included in the verification of beneficial owners procedures?

Including both details on when to open an account and protocols for how to handle account closing in the verification of beneficial owners procedures is crucial for comprehensive compliance with the Bank Secrecy Act (BSA).

Understanding when to open an account involves having a clear and structured process for identifying and verifying beneficial owners at the inception of the banking relationship. This ensures that the financial institution is complying with regulations that require thorough due diligence before accepting new customers.

Additionally, having protocols for account closing relates to the need to ensure that all actions regarding beneficial owners are documented and that their information is maintained accurately throughout the lifecycle of the account. This includes understanding the proper steps to take when an account is closed, including any obligations for record retention and reporting that may arise from the closure.

Thus, including both aspects in the verification procedures establishes a robust framework for managing risk associated with money laundering and terrorist financing, thereby aligning with regulatory expectations and protecting the institution against potential violations.