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1 FinCEN Issues Exceptive Relief Order on Beneficial Ownership Verification Requirements
On February 13, the US Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) issued an order granting exceptive relief to covered financial institutions from certain requirements under the 2016 Customer Due Diligence Requirements for Financial Institutions rule (2016 CDD Rule). The relief eliminates the requirement to identify and verify beneficial owners of legal entity customers at each new account opening. Instead, covered financial institutions must identify and verify beneficial ownership only (1) when a legal entity customer first opens an account with the institution, (2) when the institution has knowledge of facts that reasonably call into question the reliability of previously obtained beneficial ownership information, or (3) as needed based on the institution's risk-based procedures for ongoing customer due diligence. All other anti-money laundering and counter-terrorism financing requirements under the Bank Secrecy Act remain in effect, including ongoing monitoring obligations.
2 FDIC Extends Comment Period on Proposal to Establish GENIUS Act Application Procedures for FDIC-Supervised Institutions Seeking to Issue Payment Stablecoins
On February 6, to provide additional time for public comment, the Federal Deposit Insurance Corporation (FDIC) extended by 90 days the comment period for its December 19 proposed rulemaking that would establish application procedures for FDIC-supervised state nonmember banks and state savings associations seeking approval to issue payment stablecoins through a subsidiary pursuant to the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act). The comment period will now close on May 18.
3 CFPB Seeks Comment on Revisions to Credit Card Data Collection
On February 6, the Consumer Financial Protection Bureau (CFPB) published a notice and request for comment in the Federal Register proposing revisions to its required information collections relating to credit card pricing and availability, consumer credit card account agreements for open-end consumer credit plans, and college credit card agreements, including related supplemental information associated with those agreements. The CFPB stated that it is considering alternative approaches for future survey cycles to satisfy Truth in Lending Act requirements while adhering to principles of "Gold Standard Science" and reducing unnecessary compliance burden on covered institutions. The notice describes proposed changes to the sampling frame and data collection methodology for credit card issuer reporting and seeks comment on, among other things, the necessity and practical utility of the information collection, the accuracy of the CFPB's burden estimates, opportunities to improve data quality and clarity, and ways to minimize respondent burden, including through the use of automation and technology. Comments must be received by April 7.
Check Out Goodwin's Latest Industry Insights:
New Client Alerts:
FTC's "Click-to-Cancel" Rule Gets New Life
As FTC's Enforcement Wave Continues to Target Negative-Option
Sellers
The Federal Trade Commission (FTC) is increasingly directing both
its enforcement and rulemaking efforts toward auto-renewal
programs, with a particular focus on burdensome or opaque
cancellation procedures. In ongoing litigation against Uber, the
FTC recently upped the ante, adding a civil penalty claim and 21
state co-plaintiffs to its complaint that alleges, in part, that
its UberOne membership is too hard to cancel. To read more, click here.
FINRA's Annual Guidance Spotlights AI and Cyber Risk
Management and Governance
The Financial Industry Regulatory Authority (FINRA) released its
"2026 FINRA Annual Regulatory Oversight
Report" (the Report), spotlighting generative artificial
intelligence (AI) and cybersecurity risks as key areas of concern
for 2026. In this alert, we unpack the Report and offer insights
for firms seeking to capture the benefits of new technologies while
avoiding compliance and enforcement pitfalls. To read more, click here.
New Goodwin Insight:
Fitting Private Markets Into 401(k) Plans
Private markets have long been reserved for pensions, endowments,
and the wealthy. Now policymakers in the US, UK, and EU are opening
these markets to ordinary retirement savers. In the US, the biggest
test is the 401(k) system, home to more than $9 trillion and the
world's tightest fiduciary constraints. A recent White House
directive opened the door for retirement plans to add private
credit, private equity, real estate, and even cryptocurrency.
Jeremy Senderowicz, partner at Goodwin, discusses what this shift
could mean for plan sponsors, asset managers, and retirement
investors, and the practical challenges of fitting long-term,
illiquid assets into daily-valued 401(k) structures. To listen to
the full conversation or read more on this topic, click here.
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