CDD Rules Update: Where Are You Now?

Why Should You Attend:

This webinar program will discuss the key concepts and the current changes in the marketplace and provide practical approach to implement the regulation for legal entities and consumers. The rule applies only to accounts open on or after the May 11, 2018 compliance date; the rule will not apply retroactively. The rule applies to all accounts, including checking accounts, savings accounts, certificates of deposit, and loans. FinCEN believes that there are four core elements of customer due diligence (CDD) in order to ensure clarity and consistency across sectors:

• Customer Identification and Verification
• Beneficial Ownership Identification and Verification
• Understanding the nature and purpose of customer relationships to develop a customer risk profile
• Ongoing monitoring for reporting suspicious transactions and, on a risk-basis, maintaining and updating customer information

Learning Objectives:

Learning the role and responsibility of an efficient well rounded AML program. The final rule also creates a fifth “pillar” for anti-money laundering (“AML”) programs required under FinCEN’s rules for banks. Since passage of the USA PATRIOT Act, the four pillars of an AML program—policies, procedures, and internal controls; independent testing; a designated compliance official; and employee training—have formed the foundation for the federal banking agencies’ examination and enforcement practices with respect to AML compliance. The rule establishes a fifth “pillar” pursuant to which banks will be required to establish risk-based procedures for conducting ongoing customer due diligence, including the development of customer risk profiles and implementation of ongoing monitoring to identify and report suspicious activity and, on a risk basis, to update customer information. Get and in depth look at transaction monitoring and recognizing red flags. Understand the key regulations and best practices in building an effective AML program.

Areas Covered in the Webinar:

• Updated key pillars of an AML regulations
• Updating existing monitoring procedures to incorporate ongoing CDD
• Special rules for beneficial owners?
• Do we have to use the new form?
• Best practices for beneficial ownership information at lower ownerships amounts under 25%?
• Expectations in BSA/AML programs
• How to implement an effective program
• New faces of AML fraud
• New procedures and policies for business accounts
• Ongoing monitoring and training programs
• Examples of High Risk Profiles

Who Will Benefit:

This webinar will provide valuable assistance to all personnel in:

• Brokerage firms
• Compliance officers
• BSA Officer
• Payment service providers
• Branch staff
• Pay Day lenders
• Money Service Providers
• Regulatory Compliance Associates and Managers
• Compliance Officers
• Independent Sales Organizations
• CFOs and Presidents of Payment Service providers
• Managers of Payment Service Providers
• BSA staff

Armen Khachadourian
President and Founder, Digital Payments LLC

Armen Khachadourian is the founder and president of Digital Payments Inc., a consulting firm providing advisory services in the areas of merchant processing, ISO/MSP formation, development of best practices, BSA/AML guidelines, merchant portfolio and acquiring acquisitions, prepaid and alternative payment products including decoupled debit. As a trusted partner with vision to understand his client’s future business he has helped design and evaluate new products and services in today's changing marketplace.

Mr. Khachadourian has also served in executive positions at several top ten financial institutions and helped them maximize growth and revenues in today’s challenging electronic payments marketplace. As a vice president of JPMorgan Chase’s Prepaid Product in Treasury Services he was responsible for designing and launching prepaid cards in the EU market. As a senior vice president at Visa USA, he expanded card acceptance to new markets such as supermarkets, recurring payments, quick service restaurants and federal government agencies. His expertise in card products extends to issuance of credit, debit, prepaid and commercial cards. He is also an experienced manager of technology solutions including development of best practices, network policy, third-party processor contract negotiation and problem resolution.

Mr. Khachadourian earned a Bachelor of Arts degree in mathematics and a Master of Science degree in computer science from the San Jose State University in California. He authored the “Basics of Data Communications” textbook and lectured at College of San Mateo, CA. He was awarded an honorary teaching credential from State of California. He is a member of the United States National Masters team and has represented United States at four world championships.

Topic Background:

The deadline to implement the updated Customer Due Diligence (CDD) Requirements for Financial Institutions Rule…aka, Beneficial Ownership was May 11, 2018. This Webinar will cover all the updates including the new rule generally requires all the additional Risk Based procedures to conduct ongoing CDD, including understanding the nature and purpose of customer relationships, conducting ongoing monitoring to identify and report suspicious transactions, and maintaining and updating customer information.

Follow us :