During an address today at an industry event, Financial Crimes Enforcement Network Acting Director Himamauli Das outlined timelines and next steps for Corporate Transparency Act-mandated rulemakings and other FinCEN enforcement activities.
The final beneficial ownership information reporting rule—the first of three rulemakings to implement the CTA—was issued late last month and goes into effect on Jan. 1, 2024. The second is the access rule, which outlines protocols for access to the beneficial ownership database by law enforcement and financial institutions, which Das said will be issued “in the near term.” The third is a revised customer due diligence rule to be issued “no later than one year after the effective date of the reporting rule,” he said. FinCEN also is developing infrastructure to build “a secure and confidential database that meets the highest security standards,” ensuring only authorized users can access information, Das said, which he expects to be operational by the time the reporting rule comes into effect.
“We know the reporting rule will impact small businesses, as well as financial institutions and federal and state law enforcement that use the reporting information” and FinCEN is “mindful” of the possible burdens of the rule, he said. “We will be working to develop guidance and educational materials to help reporting companies prepare to file their beneficial ownership information reports.”
Das added that the new CTA rules will bring more depth to FinCEN’s enforcement activities and thanked financial institutions for their current diligence with filing suspicious activity reports and other information with FinCEN, calling the work “critical” for law enforcement investigations and prosecutions. “We are constantly looking for ways to strengthen” partnerships and collaboration with banks and other stakeholders, he said.
