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Structured Finance Special Purpose Vehicles and FinCEN’s CDD Rule  


Author:  Jeremy Kuester.


Source: Volume 52, Number 17, October 1 2019 , pp.205-209(5)




Review of Securities & Commodities Regulation

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Abstract: 

Compliance with FinCEN’s new customer due diligence rule can present significant difficulties for financial institutions that do business with SPVs in structured finance transactions. The author discusses the rule, the difficulties it presents, and the many exclusions it allows. He finds that similarly situated SPVs may be subject to dissimilar treatments under the rule and that a compelling case can be made for FinCEN to exclude SPVs more broadly from the rule’s definition of “legal entity.”

Keywords: Customer Due Diligence Rule; Pooled Investment Vehicles (“PIV”); SEC Rule 3a-7

Affiliations:  1: White & Case LLP.

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