FinCEN Proposed New Bank Due Diligence Rules
Financial institutions must prepare for revised compliance obligations following federal shifts in beneficial ownership policy.
Updated on Sept. 21, 2026 in Financial Services
Live Poll
Do you trust the federal government to effectively manage bank anti-money laundering requirements?
FinCEN submitted a proposed rule to the Office of Management and Budget to rewrite bank customer due diligence requirements. This regulatory action follows the administration's permanent exemption of domestic companies from beneficial ownership reporting requirements.
Why it matters
The proposal aims to recalibrate bank compliance burdens after federal authorities dismantled the beneficial ownership database. For operators, this marks a shift in how financial institutions will likely manage due diligence and verify client information moving forward.
The proposed rule follows a 25% ownership threshold benchmark for identifying beneficial owners. It serves as a regulatory adjustment following the August 2026 permanent exemption of domestic companies and U.S. persons from prior federal reporting mandates.
The players
FinCEN
A bureau of the U.S. Department of the Treasury that safeguards the financial system from illicit use and manages anti-money laundering regulations.
Office of Management and Budget
The executive agency responsible for reviewing federal regulations and coordinating administration policy across the government.
The details
The proposal, submitted to the Office of Information and Regulatory Affairs, seeks to bridge a compliance gap created when the administration moved to eliminate most federal beneficial ownership reporting. Banks are now facing a modified landscape where federal databases are no longer available to assist in customer verification. Financial institutions will need to adjust their internal compliance protocols to account for this shift in federal oversight.
Timeline
The Corporate Transparency Act was enacted in 2021.
Most beneficial ownership reporting requirements were eliminated in March 2025.
The administration permanently exempted domestic companies in August 2026.
FinCEN submitted the proposed rule on September 17, 2026.
Regulators issued a joint statement regarding suspicious activity in September 2026.
Market Landscape
This move represents a departure from the enforcement patterns established by the 2021 Corporate Transparency Act. It effectively pivots regulatory oversight back toward financial institutions following the dismantling of centralized beneficial ownership databases.
Business owners should expect their banking partners to update onboarding and due diligence questionnaires in the near term. Consult with your compliance counsel to understand how these evolving verification rules will impact your existing corporate accounts.
The takeaway
The regulatory shift signals that financial institutions will bear the primary responsibility for customer verification in the absence of federal registries. Track upcoming agency guidance to identify new documentation standards that may affect your firm's banking relationships.
Further reading
For more on evolving regulatory mandates, visit the Financial Services section.
Live Poll
Do you trust the federal government to effectively manage bank anti-money laundering requirements?
