Lawmakers seek delay for beneficial ownership reporting implementation

More than 80 House and Senate lawmakers on Tuesday urged the Treasury Department and Financial Crimes Enforcement Network to delay all beneficial ownership information reporting requirements by at least one year and until the agency finalizes all outstanding rulemakings. The requirements are currently set to go into effect on Jan. 1.

In a joint letter, the lawmakers said FinCEN is “woefully behind” in educating small business owners and stakeholders about new obligations under the Corporate Transparency Act. They cited a National Federation of Independent Business survey that found 90% of respondents were entirely unfamiliar with the reporting requirements. “This lack of awareness and education is alarming and must be addressed before the law is implemented,” they said.

The lawmakers further noted that FinCEN has not finalized two final rulemakings concerning BOI database access and customer due diligence. “We believe a year’s delay will provide FinCEN and the business community with more time to educate owners of their new obligations,” they said. “It will also give FinCEN time to review the new rules and improve and finalize the statute’s regulatory framework.”