CDD Rule definition

CDD Rule means the Customer Due Diligence Requirements for Financial Institutions issued by the U.S. Department of Treasury Financial Crimes Enforcement Network under the Bank Secrecy Act (such rule published May 11, 2016 and effective May 11, 2018, as amended from time to time).

CDD Rule means the Customer Due Diligence Requirement for Financial Institutions issued by the U.S. Department of Treasury Financial Crimes Enforcement Network under the Bank Secrecy Act (such rule published May 11, 2016 and effective May 11, 2018, as amended from time to time).

CDD Rule has the meaning ascribed thereto in subsection 1(q);

Examples of CDD Rule in a sentence

• Under the CDD Rule, member firms must obtain from the natural person opening the account on behalf of the legal entity customer, the identity of the beneficial owners of the entity.

• As the first component is already an AML program requirement (under the CIP Rule), the CDD Rule focuses on the other three components.

• In any case, the CDD Rule requires that member firms maintain records of the beneficial ownership information they obtain.

• On May 11, 2016, FinCEN adopted a final rule on Customer Due Diligence Requirements for Financial Institutions (CDD Rule) to clarify and strengthen customer due diligence for covered financial institutions, including broker-dealers.

• Specifically, the CDD Rule focuses particularly on the second component by adding a new requirement that covered financial institutions establish and maintain written procedures as part of their AML programs that are reasonably designed to identify and verify the identities of beneficial owners of legal entity customers, subject to certain exclusions and exemptions.

• Once member firms obtain the required beneficial ownership information, the CDD Rule requires that firms verify the identity of the beneficial owner(s) – in other words, that they are who they say they are – and not their status as beneficial owners through risk-based procedures that include, at a minimum, the elements required for CIP procedures for verifying the identity of individual customers.

• FinCEN intends that the legal entity customer identify its ultimate beneficial owner(s) and not “nominees” or “straw men.” The CDD Rule does not prescribe the form in which member firms must collect the required information, which includes the name, date of birth, address and Social Security number or other government identification number of beneficial owners.

• In its CDD Rule, FinCEN identifies four components of customer due diligence: (1) customer identification and verification; (2) beneficial ownership identification and verification; (3) understanding the nature and purpose of customer relationships for the purpose of developing a customer risk profile; and (4) conducting ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information.

• In addition, as stated in the CDD Rule, these elements are already implicitly required for covered financial institutions to comply with their suspicious activity reporting requirements.

• The CDD Rule also addresses the third and fourth components, which FinCEN states “are already implicitly required for covered financial institutions to comply with their suspicious activity reporting requirements,” by amending the existing AML program rules for covered financial institutions to explicitly require these components to be included in AML programs as a new “fifth pillar.” These requirements are discussed further below.

More Definitions of CDD Rule

CDD Rule means the Customer Due Diligence Requirements for Financial Institutions issued by the U.S. Department of Treasury Financial Crimes Enforcement Network under the Bank Secrecy Act (such rule published May 11, 2016 and effective May 11, 2018).

CDD Rule means the Customer Due Diligence Requirements for Financial Institutions issued by the U.S. Department of Treasury Financial Crimes Enforcement Network under the Bank Secrecy Act (such rule published May 11, 2016 and effective May 11, 2018, as amended from time to time). For purposes of determining whether the conditions specified in this Section 4.01 have been satisfied on the Closing Date, by funding the Loans hereunder, the Administrative Agent and each Lender that has executed this Agreement (or an Assignment and Assumption on the Closing Date) shall be deemed to have consented to, approved or accepted, or to be satisfied with, each document or other matter required hereunder to be consented to or approved by or acceptable or satisfactory to the Administrative Agent or such Lender, as the case may be. Notwithstanding the foregoing, to the extent any Guarantee to be provided by a Dutch Loan Party or Lien search or Collateral (including the creation or perfection of any security interest) is not or cannot be provided on the Closing Date (other than, (i) a Lien on Collateral of any Loan Party that may be perfected solely by the filing of a financing statement under the UCC and (ii) a pledge of the Capital Stock of the Initial U.S. Borrower, the Initial Dutch Borrower and the other Domestic Loan Parties (other than Holdings) to the extent certificated with respect to which a Lien may be perfected on the Closing Date by the delivery of a stock or equivalent certificate, together with a related stock or equivalent power executed in blank) after the Borrower’s use of commercially reasonable efforts to do so without undue burden or expense (and with respect to the delivery of stock or equivalent certificates of relevant subsidiaries of the Target whose Capital Stock is required to be pledged pursuant to the U.S. Security Agreement or the Dutch Collateral Documents, only to the extent received after the Borrower’s use of commercially reasonable efforts to do so and otherwise within ten Business Days of the Closing Date (or such longer period as is reasonably agreed by the Administrative Consent Party)), then the provision of any such Guarantee, Lien search and/or the provision and/or perfection of such Collateral (including the delivery of stock certificates of any Foreign Subsidiary constituting Collateral) shall not constitute a condition precedent to the availability or funding of the Credit Facilities on the Closing Date but may instead be delivered and/or ...

CDD Rule means the Customer Due Diligence Requirements for Financial Institutions issued by the U.S. Department of Treasury Financial Crimes Enforcement Network under the Bank Secrecy Act (such rule published May 11, 2016 and effective May 11, 2018, as amended from time to time). “CFTC” means the Commodity Futures Trading Commission or any successor to the Commodity Futures Trading Commission. “Change in Tax Law” means, with respect to the Administrative Agent, any Lender or any Issuer, any change in treaty, law, regulation, Revenue Ruling, Revenue Procedure or Notice (published in the Internal Revenue Bulletin) in respect of Taxes, in each case, that occurred after such Person became a party to this Agreement (or, if such Person is an intermediary or flow-through entity for U.S. federal income tax purposes, after the relevant beneficiary or member of such Person became such a beneficiary or member, if later). “Change of Control” means: (a) prior to a Qualifying IPO, the occurrence of any of the following events: Permitted Holders shall in the aggregate cease to be the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of at least a majority of the total voting power of all outstanding Voting Stock of the Relevant Parent Entity; or (b) following a Qualifying IPO, (x) the Permitted Holders shall in the aggregate be the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of less than 35% of the total voting power of all outstanding Voting Stock of the Relevant Parent Entity (or, if there is no Relevant Parent Entity, Borrower) and (y) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act), other than one

CDD Rule the Customer Due Diligence Requirements for Financial Institutions issued by the U.S. Department of Treasury Financial Crimes Enforcement Network under the Bank Secrecy Act (such rule published May 11, 2016 and effective May 11, 2018, as amended from time to time). “Change in Law”: as defined in Subsection 4.11(a).