ABA Proposes Changes to FinCEN Beneficial Ownership Registry Rules

In response to the Financial Crimes Enforcement Network’s proposed rule for a beneficial ownership registry, ABA said today in a comment letter to FinCEN that it is difficult to determine how the reporting requirements will fit with bank responsibilities because it is only the first of three regulations to implement the registry.

ABA supports the creation of the registry and made several recommendations including that FinCEN take steps to validate information submitted to the registry. The association also recommended that FinCEN clarify the definition of a reporting company, clarify the information a reporting company must submit, develop a plan to educate reporting companies of the requirements and address situations involving trusts as beneficial owners.

ABA also emphasized that FinCEN should adopt a uniform filing deadline of 30 days and convene a roundtable of interested parties to explore the pros and cons of the FinCEN identifier that the Corporate Transparency Act directs it to create.