GOP lawmakers raise concerns about beneficial ownership rule implementation

A group of four Republican lawmakers wrote to Treasury Secretary Janet Yellen and Financial Crimes Enforcement Network Director Him Das to raise concerns about FinCEN’s plans to educate stakeholders, including 32.6 million U.S. small businesses that may become reporting companies pursuant to new beneficial ownership rules, about their future filing obligations, and possible penalties for non-compliance when the rules take effect Jan. 1, 2024.

The groups requested detailed information on how FinCEN intends to work with stakeholders to educate reporting companies. Among other things, they requested a detailed report on FinCEN’s timeline for the finalization of the “access rule” and “CDD rule,” two related rulemakings called for under the Corporate Transparency Act, as well as a detailed plan on how Treasury will safeguard the information collected.

“It is concerning that with six months until its effective date, Fincen has yet to lay out a clear plan for engagement,” the lawmakers said in the letter. “It is highly unlikely that the 32 million small business owners know what Fincen is let alone know to look for a press release on Fincen’s website. As a result, there is a real possibility that these small businesses could be held civilly or criminally liable for noncompliance.”