McHenry introduces bill to delay beneficial ownership reporting implementation

House Financial Services Committee Chairman Patrick McHenry (R-N.C.) on Monday introduced legislation that would effectively delay the date that beneficial ownership reporting requirements go into effect, which is currently Jan. 1, 2024. The legislation was one of two bills sponsored by McHenry concerning the Financial Crimes Enforcement Network—the other would require FinCEN’s director to be nominated by the president with the consent of the Senate.

FinCEN established a BOI registry last year pursuant to the Corporate Transparency Act. ABA, state bankers associations and lawmakers from both parties have criticized the agency’s implementation of the law. McHenry’s bill—the Protecting Small Business Information Act—would push back the effective date of BOI implementation until FinCEN finalizes all rulemakings required by the CTA, including the proposed BOI access rulemaking and revises the customer due diligence rule, which FinCEN has not yet proposed as a rulemaking.