The Federal Financial Institutions Examination Council on May 11 issued new examination procedures pursuant to the final rule, Customer Due Diligence Requirements for Financial Institutions, issued by the Financial Crimes Enforcement Network exactly two years earlier. FinCEN's 2016 final rule, aimed at improving anti-money laundering efforts, clarifies customer due diligence requirements and includes a new requirement for covered financial institutions to identify and verify the identity of beneficial owners of certain legal entity customers. FinCEN is requiring financial firms to collect information about any individual who owns at least a 25 percent stake in any company opening a new account, as well as anyone who directly controls or manages the entity. Banks must also develop a risk profile of their customers. The new examination procedures apply to banks, savings and loan associations, savings associations, credit unions, and branches, agencies, and representative offices of foreign banks. The FFIEC member agencies – the Fed, FDIC, OCC, CFPB and the National Credit Union Administration – created the procedures in collaboration with FinCEN and the Treasury Department. Subsequently, on May 16, FinCEN announced a 90-day exemption for the beneficial ownership requirements "with respect to certain financial products and services that automatically rollover or renew (ie, certificate of deposit [CD] or loan accounts) and were established before the Beneficial Ownership Rule's Applicability Date." The new rule was the subject of a May 16 hearing of the Terrorism and Illicit Finance Subcommittee of the House Financial Services Committee, chaired by Representative Steve Pearce (R-NM), who said, "there are legitimate concerns about the application of this rule and the impact it could have on banks already struggling with BSA compliance. Adding additional requirements will likely lead to the de-risking of legitimate business accounts because of increased regulatory burdens. It is important for our federal regulators to strike the appropriate balance between ensuring safety as well as access to the financial system."