WASHINGTON, February 13, 2026 — The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an Exceptive Relief Order providing relief from certain customer due diligence requirements applicable to covered financial institutions under the 2016 Customer Due Diligence (CDD) Rule.
The order, referenced as FIN-2026-R001, grants relief from the requirement to identify and verify beneficial ownership information for an existing legal entity customer at each subsequent account opening.
Scope of the exceptive relief
Under the order, covered financial institutions are no longer required to obtain and verify beneficial ownership information for an existing legal entity customer at each subsequent account opening, provided that the institution has previously obtained the required information.
The order provides that a covered financial institution must identify and verify beneficial ownership information when a legal entity customer first opens an account, when the institution becomes aware of information that calls into question the reliability of previously obtained beneficial ownership information, or as otherwise required pursuant to its risk-based procedures for ongoing customer due diligence.
FinCEN stated in the order that the relief does not eliminate the obligation to maintain appropriate risk-based policies and procedures for ongoing monitoring and updating of customer information.
Legal authority and framework
The order was issued pursuant to FinCEN’s authority under the Bank Secrecy Act to grant exemptions or exceptive relief from regulatory requirements.
The CDD Rule, finalized in 2016, requires covered financial institutions to identify and verify the beneficial owners of legal entity customers and to establish risk-based procedures for ongoing customer due diligence.
The exceptive relief modifies how beneficial ownership verification requirements apply in the context of subsequent account openings, while leaving other CDD obligations in place.
Effective date
The order is dated Feb. 13, 2026, and became effective upon issuance.
FinCEN stated that covered financial institutions remain subject to all other applicable requirements under the Bank Secrecy Act and its implementing regulations.
