In a letter, a bipartisan group of 12 lawmakers called on the Financial Crimes Enforcement Network to amend beneficial ownership information reporting requirements set to take effect next year, saying the agency’s rulemaking deviates from congressional intent by allowing beneficial owners to withhold identifying information.
The Financial Crimes Enforcement Network this week published its first set of guidance materials to aid the public and small businesses in understanding upcoming beneficial ownership information reporting requirements taking effect on Jan. 1, 2024.
In a letter yesterday, ABA urged the Financial Crimes Enforcement Network to make changes to the form that entities will use to report beneficial ownership information to the registry that FinCEN is creating to store this information.
In a letter this week, ABA and the 51 state bankers associations urged the Financial Crimes Enforcement Network to withdraw its proposal regarding access to the registry of beneficial ownership information, calling the proposal “fatally flawed.”
The reports will be filed electronically through an online interface and must contain specific types of information outlined by FinCEN.
Financial institutions should not wait for a central registry to come online. Banks benefit by becoming proactive right now.
Keeping up with changing regulations was the top concern for U.S. financial services firms, according to Wolters Kluwer’s annual Regulatory and Risk Management Indicator survey.
The proposed regs would govern how BOI information is protected and disclosed to federal agencies, governments and financial institutions.
The rule will require most corporations created in or registered to do business in the U.S. to report beneficial ownership information to FinCEN.
As the Financial Crimes Enforcement Network works to implement the Corporate Transparency Act—an ABA-advocated provision of the Anti-Money Laundering Act of 2020—Acting Director Him Das told lawmakers it will publish a second notice of proposed rulemaking this year “that will propose regulations governing access to beneficial ownership information by law enforcement, national security agencies, financial institutions and others.”