On 11/19/2020, the Financial Crimes Enforcement Network (FinCEN), in coordination with the Federal Banking Agencies, issued a joint fact sheet for banks to better understand how to apply a risk-based approach to charities and other non-profit organizations, often referred to as NPOs. In their release, the CFPB explains that the joint fact sheet highlights the importance of ensuring that legitimate charities have access to financial services and can transmit funds through legitimate and transparent channels, especially during the current COVID-19 pandemic. The joint fact sheet also reminds banks to apply a risk-based approach to customer due diligence (CDD) requirements when developing the risk profiles of charities and other non-profit customers.
The four-page joint fact sheet can be found here.